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HomeMy WebLinkAboutItem 4.11 Engineer's Report 5 Assessment Distor nU,�� 19 82 STAFF REPORT CITY CLERK CITY COUNCIL File #360- 20/360 -30 DATE: June 7, 2016 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Approval of Preliminary Engineer's Reports and Appointing a Time and Place of Hearing Protests for Citywide Street Lighting Maintenance Assessment District 83 -1; Landscaping and Lighting Maintenance Assessment District 83 -2; Landscaping and Lighting Maintenance Assessment District 86 -1; Landscaping and Lighting Maintenance Assessment District 97 -1; Street Lighting Maintenance Assessment District 99 -1 Prepared by Andrew C. Russell, City Engineer EXECUTIVE SUMMARY: The City Council will consider approval of the preliminary Fiscal Year 2016 -17 Engineer's Reports and consider scheduling a public hearing date of June 21, 2016 for the five assessment districts. FINANCIAL IMPACT: A summary of revenues, expenditures, and balances of each District is shown in the table below. Revenues and expenditures for each assessment district are tracked separately. There are minor differences anticipated between the preliminary Engineer's Report and the proposed budget, due to the timing of the City budget process and the preparation of these Engineer's Reports. This will be monitored in the upcoming year and a budget adjustment may be recommended after the closing of the current year SUMMARY PRELIMINARY ASSESSMENT DISTRICT FISCAL YEAR 2016 -2017 REVENUE & EXPENDITURES Page 1 of 8 ITEM NO. 4.11 Citywide Stagecoach Dougherty Santa Rita East Dublin St. Light Rd Rd Landscape St. Light 1983 -1 Landscape Landscape 1997 -1 1999 -1 1983 -2 1986 -1 A - PROJECTED $298,711 $88,046 $144,329 $376,690 $313,214 REVENUE B - ESTIMATED $351,211 $88,046 $141,339 $385,205 $188,547 EXPENDITURES RESERVE BALANCE ESTIMATED $167,811 $93,577 $158,210 $345,918 $547,388 BEGINNING BALANCE REVENUE MINUS ($52,500) $0 $2,990 ($8,515) $124,667 EXPENDITURES Page 1 of 8 ITEM NO. 4.11 RECOMMENDATION: Staff recommends that the City Council adopt the Resolutions Approving the Preliminary Engineer's Reports and setting a public hearing date and time of June 21, 2016, 7:00 p.m. in the City Council Chambers for the purpose of hearing any comments to the proposed Fiscal Year 2016 -2017 assessments for: Citywide Street Lighting Maintenance Assessment District No. 1983 -1; Landscaping and Lighting Maintenance Assessment District No. 1983 -2 (Tract 4719); Landscaping and Lighting Maintenance Assessment District No. 1986 -1 (Villages at Willow Creek); Landscaping and Lighting Maintenance Assessment District No. 1997 -1 (Santa Rita Area); and Street Lighting Maintenance Assessment District No. 1999 -1 (Dublin Ranch Area and Tracts 7067, 75867 80247 80737 8074). ubmitte` By Public Works Director DESCRIPTION: '\ Reviewed By Assistant City Manager The proposed resolutions approve the preliminary Engineer's Reports for the two street lighting maintenance assessment districts and the three landscaping and lighting maintenance assessment districts described below for Fiscal Year 2016 -17 and set a public hearing date for each assessment district on June 21, 2016, in the City Council Chambers, located at 100 Civic Plaza, Dublin. Citywide Street Lighting Maintenance Assessment District No. 1983 -1 This assessment district was established in 1983 to replace a County Service Area (CSA) that was originally in place to fund this maintenance. The City Council approved formation of this District on August 2, 1983, with the initial assessment in the 1984 -1985 tax year. The boundary of this assessment district encompasses the entire City, with the exception of properties within assessment district 1999 -1. The maximum assessment allowed under the authorizing documents is $19.34 per unit for residential uses and $106.37 per acre for commercial uses. The maximum assessment has been levied since Fiscal Year 2007 -08. There is no provision in the formation documents to increase the per unit levy. As noted in the Engineer's Report (Attachment 2) any increase would Page 2 of 8 Citywide Stagecoach Dougherty Santa Rita East Dublin St. Light Rd Rd Landscape St. Light 1983 -1 Landscape Landscape 1997 -1 1999 -1 1983 -2 1986 -1 (A — B) TRANSFER TO CAPITAL $0 $0 $0 ($50,000) ($351,450) IMPROVEMENT FUND ESTIMATED INTEREST AND OTHER INCOME $8,917 $936 $3,069 $8,648 $16,041 PROJECTED ENDING BALANCE $124,288 $94,513 $164,269 $296,051 $336,646 FISCAL YEAR 2015 -16 RECOMMENDATION: Staff recommends that the City Council adopt the Resolutions Approving the Preliminary Engineer's Reports and setting a public hearing date and time of June 21, 2016, 7:00 p.m. in the City Council Chambers for the purpose of hearing any comments to the proposed Fiscal Year 2016 -2017 assessments for: Citywide Street Lighting Maintenance Assessment District No. 1983 -1; Landscaping and Lighting Maintenance Assessment District No. 1983 -2 (Tract 4719); Landscaping and Lighting Maintenance Assessment District No. 1986 -1 (Villages at Willow Creek); Landscaping and Lighting Maintenance Assessment District No. 1997 -1 (Santa Rita Area); and Street Lighting Maintenance Assessment District No. 1999 -1 (Dublin Ranch Area and Tracts 7067, 75867 80247 80737 8074). ubmitte` By Public Works Director DESCRIPTION: '\ Reviewed By Assistant City Manager The proposed resolutions approve the preliminary Engineer's Reports for the two street lighting maintenance assessment districts and the three landscaping and lighting maintenance assessment districts described below for Fiscal Year 2016 -17 and set a public hearing date for each assessment district on June 21, 2016, in the City Council Chambers, located at 100 Civic Plaza, Dublin. Citywide Street Lighting Maintenance Assessment District No. 1983 -1 This assessment district was established in 1983 to replace a County Service Area (CSA) that was originally in place to fund this maintenance. The City Council approved formation of this District on August 2, 1983, with the initial assessment in the 1984 -1985 tax year. The boundary of this assessment district encompasses the entire City, with the exception of properties within assessment district 1999 -1. The maximum assessment allowed under the authorizing documents is $19.34 per unit for residential uses and $106.37 per acre for commercial uses. The maximum assessment has been levied since Fiscal Year 2007 -08. There is no provision in the formation documents to increase the per unit levy. As noted in the Engineer's Report (Attachment 2) any increase would Page 2 of 8 require the approval of property owners subject to the assessment. Therefore, the proposed assessment amount for Fiscal Year 2016 -17 remains the same as Fiscal Year 2015 -16 as shown below. Citv Street Liahtina Assessments (District 1983 -11 Property Type Current Fiscal Year Proposed Fiscal Year 2016 -17 Annual Change ($) Equivalent Dwelling Unit (EDU) $19.34 $19.34 No Change Commercial Per Acre $106.37 per acre $106.37 per acre No Change LED Conversion Project: In Fiscal Year 2012 -13, approximately 2,800 street lights in the District were retrofitted with new light emitting diode (LED) fixtures. The cost of these improvements is being financed by a 14 -year loan. The loan is being paid by District funds. The loan payments vary on a yearly basis according to the debt service schedule. In Fiscal Year 2016 -17, the loan repayment is $148,563. The last loan payment is in September, 2026. Fiscal Sustainability: Citywide Street Lighting Maintenance Assessment District No. 1983 -1 is the only assessment district in Dublin where the annual levy is capped at a set maximum amount. The cap is due to the passage of Proposition 218 in 1996. After Proposition 218 passed, assessment districts were required to obtain voter approval prior to increasing a levy. Currently, it is anticipated expenditures will exceed revenue beginning in Fiscal Year 2019 -20. Staff will be investigating the following options in the coming fiscal year. 1. Reduce District Expenditures. Large expenditures within the District are electricity, maintenance, and a loan repayment for LED conversions. Cost for electricity is based upon a flat -rate PG &E charge for each street light. The conversion to LED fixtures has reduced the District's electric bill by approximately fifty percent. Street light maintenance, which is provided on an as- needed basis through a contract with the County of Alameda, has also decreased by approximately fifty percent since the LED conversion. Maintenance calls have decreased because these light fixtures are relatively new. Also, LED fixtures are longer lasting than the former high - pressure sodium fixtures, which results in long -term maintenance savings. The largest expenditure of the District is the loan repayment for the LED conversion project. Currently, the annual loan repayment is approximately equal to the combined annual cost of electricity and maintenance. There are eleven remaining loan repayments, seven of which will require General Fund subsidy until the loan is paid in full in 2026. Staff will review and evaluate the anticipated expenditures in this District, during the loan period and following its payoff, to provide the City Council with an accurate assessment of the long -term General Fund impacts of subsidizing the District. 2. Increase District Revenue: The current District levy is capped at $19.34 per single family home. In order to increase the existing assessment, the City of Dublin must give written notice to all property owners, hold a public hearing, and hold an assessment ballot vote of property owners. A majority vote from ballot responses received is required to approve a rate increase. Such a vote would require significant outreach and education and it is questionable whether the City could reach a majority "yes" vote by property owners. Page 3 of 8 Again, additional analysis on the long -term General fund impacts can help to inform whether a vote of the property owners is worthwhile. 3. Alternative Funding Sources: Once expenditures exceed revenue, the City of Dublin would need to provide alternate funding in order to keep street lights on and maintained. The most likely source of additional funds would be the General Fund. This revenue would meet a gap during the final seven years of repayment of the LED conversion loan. Staff will explore additional potential funding sources, such as grant funds or gas tax revenue, to address this need. Staff is proposing that the City Council adopt the resolutions approving the Engineer's Report for the Citywide Street Lighting Maintenance Assessment District No. 1983 -1 (Attachment 3) and appointing the time and date for hearing comments on the proposed assessment (Attachment 4). Landscaping and Lighting Maintenance Assessment District No. 1983 -2 (Tract 4719) This assessment district was formed as part of the approval process of Tract 4719 and covers the 150 -unit single - family Dublin Hills Estates development and the Amador Lakes development. The District is responsible for the maintenance of the Stagecoach Road landscaping and the interior slope landscaping within Tract 4719. The spread of assessments assigns 61.61% of the total assessment to the single - family homes of Dublin Hills Estates and 38.39% to the Amador Lakes Apartments. In addition to on -going maintenance and utility costs, the Engineer's Report for Fiscal Year 2016 -17 (Attachment 5) allocates funds for needed improvements. The proposed work includes replacing a deteriorating wooden retaining wall with a masonry wall, located on Stagecoach Road between Jade Circle and Lake Drive. The assessment methodology approved in Fiscal Year 2003 -04 by property owners in the District includes an escalation clause that allows for adjustments to the assessment according to the Consumer Price Index and the utility cost increases. These factors are updated in the Engineer's Report on an annual basis. The maximum assessment in the Engineer's Report for Fiscal Year 2016 -17 is $457.52 per single family residence and $76.40 per multi - family residence. The City has the ability to levy less than the maximum based on reserve funds on hand and the budgeted costs for District expenditures. The assessment for FY 2016 -17 is proposed to increase by 2.2% from the previous year's levy. The following displays the current and proposed assessment: Stagecoach Road Assessments (District 1983 -2) Staff is proposing that the City Council adopt the resolutions approving the Engineer's Report for the Landscaping and Lighting Maintenance Assessment District No. 1983 -2 (Attachment 6) and Page 4 of 8 Current Fiscal Proposed Fiscal Annual Property Type Year Year 2016 -2017 Change ($) Dublin Hills Estates — Single Family $353.90 $361.63 $7.73 Homes Amador Lakes — Apt / Condominiums $59.81 $61.12 $1.31 Staff is proposing that the City Council adopt the resolutions approving the Engineer's Report for the Landscaping and Lighting Maintenance Assessment District No. 1983 -2 (Attachment 6) and Page 4 of 8 appointing the time and date for hearing comments on the proposed assessment (Attachment 7). Landscaping and Lighting Maintenance Assessment District No. 1986 -1 (Villages at Willow Creek The assessment district was formed with the initial assessment in the 1987 -1988 tax year. The District encompasses the Villages at Willow Creek development on Dougherty Road, north of Amador Valley Boulevard. The surrounding homes are apartment complexes, condominiums and a 145 -unit single family development (Ridgecreek). The work performed by this District includes litter pickup, maintenance of soundwalls, and landscaping along Dougherty Road between Amador Valley Boulevard and Fall Creek Road; along Amador Valley Boulevard between Dougherty Road and Wildwood Road, and along Wildwood Road, Fall Creek Road, Shady Creek Drive and Willow Creek Drive. Landscaping within the condominium and apartment developments is the responsibility of the homeowners' association or property owner for those individual developments. The landscaping along and within the Alamo Creek channel area is not included in the assessment district as it is the responsibility of Alameda County Flood Control, Zone 7. In addition to on -going maintenance and utility costs, the Engineer's Report (Attachment 8) for Fiscal Year 2016 -17 allocates funds for improvements. The proposed work includes the replacement broken panels of wrought iron fence along Willow Creek and Wildwood Road. The assessment methodology approved in 2001 by property owners in the District includes an escalation clause that allows for adjustments to the assessment according to the Consumer Price Index and the utility cost increases. These factors are updated in the Engineer's Report on an annual basis. The maximum assessment in the Engineer's Report for Fiscal Year 2016 -17 is $221.53 per single family residence, $110.77 per multi - family residence, and $886.12 for the commercial parcel. The City has the ability to levy less than the maximum based on reserve funds on hand and the budgeted costs for District expenditures. The assessment for Fiscal Year 2016 -17 is proposed to increase by 2.7 %, to equal the maximum levy allowed. This assessment will help build the District reserves. The following displays the current and proposed assessment: Villaaes At Willow Creek Assessments (District 1986 -1) Property Type Current Fiscal Year Proposed Fiscal Year 2016 -2017 Annual Change ($) Single Family Homes $215.72 $221.53 $5.81 Amador Lakes — Apt / Condominiums $107.86 $110.76 $2.90 Commercial $862.88 $886.12 $23.24 Staff is proposing that the City Council adopt the resolutions approving the Engineer's Report for Landscaping and Lighting Maintenance Assessment District No. 1986 -1 (Attachment 9) and appointing the time and date for hearing comments of the proposed assessment (Attachment 10). Page 5 of 8 Landscaping and Lighting Maintenance Assessment District No. 1997 -1 (Santa Rita Area) This assessment district was formed in 1996 at the request of the Alameda County Surplus Property Authority. The initial assessment was levied in Fiscal Year 1997 -1998. The area covered by this District is bound by Gleason Drive on the North and Interstate 580 on the South, Arnold Road on the West and Tassajara Road on the east. The District maintains portions of roadside landscaping for Dublin Boulevard, Hacienda Drive, Central Parkway, Arnold Road, Tassajara Road (westerly portion), and Gleason Drive. The District also maintains the trail and landscaping along the Tassajara Creek channel. Median landscape maintenance is not included in this District. For Fiscal Year 2016 -17, plant replacement will take place at various locations along Arnold Road, Hacienda Drive, Central Boulevard, and Dublin Boulevard. Mulch and plants will be added at various locations throughout the assessment district. The current drought restrictions prohibit the use of potable water outside a specified schedule set by Dublin San Ramon Services District; however, this District is irrigating with recycled water. The total developed acreage in this District is 421.87 acres. As provided in the Engineer's Report (Attachment 11), individual lots in residential subdivisions are assessed based on density. The original Engineer's Report for this District provided for an initial maximum assessment of $710.00 per acre, which could be increased annually based on the change in the Consumer Price Index (CPI) as well as actual increases in the cost of utilities. This CPI factor is updated in the Engineer's Report on an annual basis. The maximum assessment per acre in the Engineer's Report for Fiscal Year 2016 -17 is $1,261.61 per acre. Although the assessment district formula establishes a maximum cost that can be levied, based on planned expenditures in the District the per -acre assessment required to fund Fiscal Year 2016 -17 activities is $903.85 per acre, which is equal to the prior year assessment. Staff is recommending no increase in assessment because the District reserve balance is high enough that the reserve balance is projected to be 78% of annual District costs at the end of Fiscal Year 2016 -17. Staff is also recommending a transfer of $50,000 from the reserve balance into the District Capital Improvement Fund. It is anticipated that the Capitol Improvement Fund will fund a future trail rehabilitation project, once the fund balance is high enough. The density of the various housing units differ the allocation on a per acre basis and result in different assessments as shown below: Santa Rita Area Assessments (District 1997 -1) Property Type Current Fiscal Year Proposed Fiscal Year 2016 -2017 Annual Change ($) California Creekside single - family $128.52 per lot $128.52 per lot $0 California Brookside multi - family $55.69 per lot $55.69 per lot $0 SummerGlen — Richmond American (north) Single Family $112.54 per lot $112.54 per lot $0 Page 6 of 8 Staff is proposing that the City Council adopt the resolutions approving the Engineer's Report for Landscaping and Lighting Maintenance Assessment District No. 1997 -1 (Attachment 12) and appointing the time and date for hearing comments of the proposed assessment (Attachment 13). Street Lighting Maintenance Assessment District No. 1999 -1 Assessment District 99 -1 funds the electricity, maintenance, and repair costs associated with the decorative street lighting that has been installed in the Dublin Ranch area and in Tracts 7067, 7586, 8024, 8073, 8074. The City Council approved formation of this District on June 1, 1999 and the initial assessment was levied in Fiscal Year 1999 -00. The District also includes a Capital Improvement Fund (CIF) reserve set aside to pay for improvement projects outside the normal operations and maintenance costs. The CIF is used to paint a portion of the decorative street light poles within the District. In addition to pole painting, the CIF will fund a project to convert the existing decorative lights to more energy efficient LED lights. The LED conversion project will be funded in fiscal year 2016 -17 and is anticipated to be constructed in fiscal year 2017 -18. The assessment methodology in the original Engineer's Report (Attachment 14) for this District includes an escalation clause that allows for adjustments to the assessment according to the Consumer Price Index and the utility cost increases. These factors are updated in the Engineer's Report on an annual basis. The maximum assessment in the Engineer's Report for Fiscal Year 2016 -17 adjusted by the approved adjustment formula is $49.62 per single family residence and $272.91 per acre for commercial parcels. The City has the ability to levy less than the maximum based on reserve funds on hand and the budgeted costs for District expenditures. Page 7 of 8 Current Fiscal Proposed Fiscal Annual Property Type Year Year 2016 -2017 Change ($) SummerGlen — Richmond American (south) $123.85 per lot $123.85 per lot $0 SummerGlen — Kaufman & Broad $172.36 per lot $172.36 per lot $0 SummerGlen — Pulte $216.24 per lot $216.24 per lot $0 Dublin Greene Tract 7084 single - family $136.13 per lot $136.13 per lot $0 Dublin Greene Tract 7149 multi- family $102.50 per unit $102.50 per unit $0 Dublin Greene Tract 7149 condominium /apartment $53.43 per unit $53.43 per unit $0 Commercial (including retail, office, and industrial uses, as well as $903.85 $903.85 $0 apartment properties) Per Acre Per Acre Staff is proposing that the City Council adopt the resolutions approving the Engineer's Report for Landscaping and Lighting Maintenance Assessment District No. 1997 -1 (Attachment 12) and appointing the time and date for hearing comments of the proposed assessment (Attachment 13). Street Lighting Maintenance Assessment District No. 1999 -1 Assessment District 99 -1 funds the electricity, maintenance, and repair costs associated with the decorative street lighting that has been installed in the Dublin Ranch area and in Tracts 7067, 7586, 8024, 8073, 8074. The City Council approved formation of this District on June 1, 1999 and the initial assessment was levied in Fiscal Year 1999 -00. The District also includes a Capital Improvement Fund (CIF) reserve set aside to pay for improvement projects outside the normal operations and maintenance costs. The CIF is used to paint a portion of the decorative street light poles within the District. In addition to pole painting, the CIF will fund a project to convert the existing decorative lights to more energy efficient LED lights. The LED conversion project will be funded in fiscal year 2016 -17 and is anticipated to be constructed in fiscal year 2017 -18. The assessment methodology in the original Engineer's Report (Attachment 14) for this District includes an escalation clause that allows for adjustments to the assessment according to the Consumer Price Index and the utility cost increases. These factors are updated in the Engineer's Report on an annual basis. The maximum assessment in the Engineer's Report for Fiscal Year 2016 -17 adjusted by the approved adjustment formula is $49.62 per single family residence and $272.91 per acre for commercial parcels. The City has the ability to levy less than the maximum based on reserve funds on hand and the budgeted costs for District expenditures. Page 7 of 8 The Engineer's Report notes that although the Assessment District formula establishes a maximum cost that can be levied, staff recommends the assessment for Fiscal Year 2016 -17 be equal to the Fiscal Year 2015 -16 assessment of $41.67 per equivalent dwelling unit and $229.19 per acre of commercial use. Staff is recommending no increase in assessment because the District reserve balance is high enough that the reserve balance is projected to be 107% of annual District costs at the end of Fiscal Year 2016 -17. Eastern Dublin & Mountain Rise Place Street Lighting Assessments (District 1999 -1) Property Type Current Fiscal Year Proposed Fiscal Year 2016 -2017 Annual Change ($) Equivalent Dwelling Unit (EDU) $ 41.67 $41.67 $0 Commercial Per Acre $229.19 per acre $229.19 per acre $0 Staff is proposing that the City Council adopt the resolutions approving the Engineer's Report for Street Lighting Maintenance Assessment District No. 1999 -1 (Attachment 15) and appointing the time and date for hearing comments of the proposed assessment (Attachment 16). NOTICING REQUIREMENTS /PUBLIC OUTREACH: Following the City Council's approval of the Engineer's Reports, a public hearing for each street lighting maintenance assessment district and landscaping and lighting maintenance assessment district will be scheduled as required. ATTACHMENTS: 1. FY 2016 -2017 Sources and Uses of Assessment District Funds 2. Engineer's Report for AD 1983 -1 3. Resolution Approving Engineer's Report for AD 83 -1 4. Resolution Appointing Time and Place of Hearing Protests of Proposed Assessments (June 21, 2016, 7:00 PM) for AD 83 -1 5. Engineer's Report for AD 1983 -2 6. Resolution Approving Engineer's Report for AD 83 -2 7. Resolution Appointing Time and Place of Hearing Protests of Proposed Assessments (June 21, 2016, 7:00 PM) for AD 83 -2 8. Engineer's Report for AD 86 -1 9. Resolution Approving Engineer's Report for AD 86 -1 10. Resolution Appointing Time and Place of Hearing Protests of Proposed Assessments (June 21, 2016, 7:00 PM) for AD 86 -1 11. Engineer's Report for AD 97 -1 12. Resolution Approving Engineer's Report for AD 97 -1 13. Resolution Appointing Time and Place of Hearing Protests of Proposed Assessments (June 21, 2016, 7:00 PM) for AD 97 -1 14. Engineer's Report for AD 99 -1 15. Resolution Approving Engineer's Report for AD 99 -1 16. Resolution Appointing Time and Place of Hearing Protests of Proposed Assessments (June 21, 2016, 7:00 PM) for AD 99 -1 Page 8 of 8 ATTACHMENT FY 2016 -2017 Sources and Use of Assessment District Funds As Presented in the Engineering Reports dated June 7, 2016 Citywide Stagecoach Dougherty Santa Rita East Dublin (St Light) Rd Rd Landscape (St Light) 83 -1 Landscape Landscape 97 -1 99 -1 83 -2 86 -1 REVENUE Total Amount Proposed $298,711 $88,046 $144,329 $376,690 $313,214 to be Assessed: Estimated Delinquency $0.00 $0.00 ($525) ($5,026) ($2,050) Cost: A. Total Revenue $298,711 $88,046 $143,804 $371,663 $311,164 EXPENDITURES Contract Maintenance $192,084 $83,780 $136,113 $321,075 $179,526 and Utilities: Administration (transfer) $5,486 $2,772 $2,772 $2,772 $3,696 and Engineering: Estimated Collection $5,078 $1,494 $2,454 $6,404 $5,325 Cost: Annual LED Repayment $148,563 B. Total Expenditures $351,211 $88,046 $141,339 $330,251 $188,547 RESERVE BALANCE Estimated Beginning $167,811 $93,577 $158,210 $345,918 $547,388 Balance July 1, 2016 Projected (Use) / Contribution To District ($52,500) $0.00 $2,991 $0.00 $124,667 Reserves (A - B) Transfer To Capital $0.00 $0.00 $0.00 ($50,000) ($351,450) Improvement Fund: Estimated Prior Year Collections, Penalties, $6,400 $0.00 $1,220 $3,459 $7,830 and Public Damage Reimbursement': Estimated Interest $2,517 $936 $2,373 $5,189 $8,211 Revenue: Projected Ending $124,288 $94,513 $164,269 $296,051 $336,646 Balance June 30, 2017 II MEN MEN uuuu IIIVo IIIVo Iluo Street Lighting Maintenance District No. 1983 -1 Fiscal Year 2016 -17 Forthe CITY OF DUBLIN Alameda County, California June 7, 2016 MHarris & Associates Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 rable of Contents June 7, 2016 1 OVERVIEW ............................................................................................................... ..............................1 1.1 INTRODUCTION ............................................................................................... ..............................1 General Description of the District ......................................................................... ..............................1 Compliance with the California Constitution .......................................................... ..............................1 Summary of Proposed Assessment and Expenditures .......................................... ............................... 2 2 IMPROVEMENTS .................................................................................................... ............................... 3 3 BUDGET ................................................................................................................... ..............................5 4 METHOD OF APPORTIONMENT .............................................................................. ..............................9 4.1 GENERAL ......................................................................................................... ..............................9 4.2 BENEFIT ANALYSIS ........................................................................................... ..............................9 GeneralBenefits ...................................................................................................... ..............................9 SpecialBenefits ...................................................................................................... .............................10 Non - Assessable Properties .................................................................................... .............................10 4.3 ASSESSMENT METHODOLOGY ....................................................................... .............................10 5 ASSESSMENT ROLL ................................................................................................. .............................13 Appendix A - Boundary Map Harris & Associates,. Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT June 7, 2016 The undersigned respectfully submits the enclosed report as directed by the City Council. The undersigned certifies that he is a Professional Engineer, registered in the State of California. DATED: June 7, 2016 BY: K. Dennis KlingAofery Assessment Engineer R.C.E. No. 50255 Harris & Associates,. Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 1 OVERVIEW 1.1 INTRODUCTION June 7, 2016 The City of Dublin ( "City ") levies and collects special assessments on parcels within the City of Dublin Street Lighting Maintenance Assessment District No. 1983 -1 ( "District ") to maintain the public street lighting improvements within those areas. The District was initially formed in 1983 to provide a dedicated source of funding for the ongoing maintenance of street lighting improvements within the boundaries of the District. The assessments and methods of apportionment described in this Report utilize commonly accepted assessment engineering practices and have been calculated and proportionately spread to each parcel based on the special benefits received as approved by the City Council at the time the District was formed. The District was created in 1983 to replace the County of Alameda Lighting Service Area within the City of Dublin to fund the maintenance and servicing costs for the City's street lighting system. In 1995- 1996, the City of Dublin acquired the PG &E -owned streetlights within the District in order to reduce maintenance costs. The District includes all parcels that were within the County of Alameda Lighting Service Area which includes all parcels within the City with the exception of Dublin Ranch; Tract 7067; the Clifton Parc development in the western hills; Tracts 8024, 8073 and 8074; and the Jordan Ranch Development. A Diagram showing the exterior boundaries of the District is provided in this Report as Appendix A. Assessments are levied annually within the District pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ( "1972 Act "). All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and are in compliance with the provisions of the California Constitution Article XIIID ( "Article XIIID"), which was enacted with the passage of Proposition 218 in November 1996. Pursuant to Article XIIID Section 5, certain existing assessments are exempt from the substantive and procedural requirements of Article XIIID Section 4. Specifically, Article XIIID Section 5(a) exempted: "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. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4." The City has determined that the annual assessments originally established for the District were for the maintenance and operation of street lights within the public street rights -of -way. As such, pursuant to Article XIIID Section 5(a), the pre- existing assessment amount has been exempt from the procedural requirements of Article XIIID Section 4 since the amount of the assessment has not increased since the passage of Proposition 218. Harris & Associates,. 1 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Any future increase in the assessment rate or substantial changes in the services provided would require that the District be brought into compliance with all of the requirements of Article XIIID and would require the approval of the property owners subject to the assessment based upon a mailed ballot which would be sent to each property owner. A summary of the assessments to be levied for each property type are shown in the table below. Based upon the estimated expenditures, a transfer will be needed from the Operating Fund Balance for fiscal year 2016 -17, and is also reflected in the projected fund balance as of June 30, 2016. As seen, the fund balance will be substantially depleted in the current year. This may require a significant reduction in service levels in future years so that expenditures match assessment revenues or the City will need to make a contribution to the District from other available funds, or increase in the current assessment rate by receiving approval by voters within the District. Property Type Assessment Rate Basis Single - Family Residential (SFR) $ 19.34 Parcel Condominium Unit $ 19.34 Unit Duplex, Multi - Family Residential $ 38.68 Parcel Triplex, Multi - Family Residential $ 58.02 Parcel Fourplex, Multi - Family Residential $ 77.36 Parcel Apartments, Multi - Family Residential $ 116.04 Parcel Commercial /Industrial /Institutional $ 106.37 Acre Rural $ 9.66 Parcel Exempt, Cemeteries, Common Open Space $ 0.00 1 Parcel Harris & Associates,. 2 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 2 IMPROVEMENTS June 7, 2016 The District provides for the continued installation, maintenance and servicing of street lighting improvements within the public right -of -ways which provide special benefit to parcels and properties within the District. As generally defined in the 1972 Act, maintenance and servicing of the street lighting improvements may include one or any combination of the following: 1) The installation or construction of public lighting facilities, including, but not limited to streetlights and traffic signals. 2) 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, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. 3) The maintenance or servicing, or both, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including, but not limited to: a) Repair, removal, or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation, repair or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. d) Electric current or energy, gas, or other agent for the lighting or operation of any other improvements. 4) Incidental expenses associated with the improvements including, but not limited to: a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; and, f) Costs associated with any elections held for the approval of a new or increased assessment. Harris & Associates,. 3 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 Pursuant to the 1972 Act: June 7, 2016 "Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or any part of any improvement. "Service" or "servicing" means the furnishing of electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. A portion of funds collected from the annual assessments of this District may also be set aside for funding future pole painting costs or other capital costs in a separate improvement fund commonly referred to as a Capital Improvement Fund (CIF). The Fund was established for proposed improvements and expenditures that are greater than can be conveniently funded from the annual assessment revenues. 4 Harris & Associates,. Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 3 BUDGET June 7, 2016 All public streetlights and other eligible improvements within the District are maintained and serviced on a regular basis, using assessment revenues. Since the assessment rate cannot be increased, due to the passage of Proposition 218 in 1996, assessment revenues have not been sufficient to fund 100% of the annual operations and maintenance costs of street lighting in past years. As a result, the District has had to transfer funds from the District's Fund Balance to fund the shortfall in assessment revenues. The table below shows the change in purchasing power since the passage of Proposition 218 based upon the annual change in the Consumer Price Index for the San Francisco Bay Area as published by the U.S. Department of Labor. Although the District has seen an increase in revenue as a result of new development, the increases in costs have increased much more quickly than the increase in assessment revenue as a result of growth. The proposed budget for the District is shown on the following page. This includes an estimate of the costs of utilities, operations, services, administration and maintenance associated with the improvements, including all labor, personnel, equipment, materials and administrative expenses. The summary also shows the estimated fund balance, and the projected contribution/ (transfer) that will be required from the fund balance based upon the estimated expenditures and assessment revenue. Projected budgets are also shown for the next 2 fiscal years. For Fiscal Year 2016 -17, the budget assumes a 15% increase for the County maintenance contract, and 4% increase for electricity rates. In fiscal year 2012 -13, 2,821 street lights in the district were retrofitted with new light emitting diode (LED) fixtures. The total construction cost for these improvements was $2,050,868, which is being financed through a 14 year loan. As seen in the budget summary, a contribution will be required from the fund balance for Fiscal Year 2016 -17. Based upon the projected costs for maintenance and servicing in future years, and the annual Harris & Associates,. 5 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 loan payment for the LED retrofit project, the fund balance is expected to decrease, though at a slower rate as a result of reduced energy costs from the streetlight conversion. Once the loan for the conversion has been repaid, annual costs will be further reduced. The budget will be updated in future years to reflect those savings. The following describes the services and costs shown in the budget. DIRECT COSTS: Operating Supplies — The cost of ongoing maintenance and servicing of the street lighting improvements including street light repair parts and the labor associated with performing the repair work. In addition, a portion of this cost is set aside as a contingency amount for large repairs. Contract with Alameda County — The cost of street light maintenance provided from the County of Alameda based on the current fiscal year contract. California Street Light Association — The cost of Street Light Association dues based on the relative number of lights within the District. Utilities Electricity —The cost of street light electrical energy use, including miscellaneous PG &E charges. Miscellaneous Expenses — Costs that cannot easily be categorized into any of the other Direct Costs defined above. ADMINISTRATIVE COSTS: District Administration, Consulting — The costs of contracting with professionals to provide services specific to the levy administration, including preparation of the Engineer's Report, resolutions, and levy submittal to the County. These fees can also include any additional administrative, legal, or engineering services specific to the District such as the cost to prepare and mail notices of the public meeting and hearing. County per Parcel Fee — The cost to the District for the County to collect assessments on the property tax bills. Alameda County charges 1.7% of the total amount levied. Harris & Associates,. I! Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 DIRECT COSTS OperatingSupplies Contract with Alameda County LED Conversion Project - O &M Savings California Street Light Association Utilities - Electricity Miscellaneous Expenses Legal Notices TOTAL DIRECT $ 166,834 $ 191,523 $ 192,084 $ ADMINISTRATION COSTS District Administration County per Parcel Fee City of Dublin Street Lighting Maintenance Assessment District 1983 -1 Adjusted Budget FY2015 -16 $ 2,136 $ 36,862 $ 870 $ 116,966 Estimated Expenses FY 2015 -16 $ 2,136 $ 36,852 $ 870 $ 141,555 Proposed Budget FY 2016 -17 $ 2,136 $ $ 37,492 $ $ 870 $ $ 141,436 $ June 7, 2016 Forecast Forecast Budget Budget FY 2017 -18 FY 2018 -19 2,136 $ 2,200 39,357 $ 41,325 $ 2,874 $ 2,904 $ - $ 870 $ 870 147,094 $ 154,449 10,000 $ 10,000 150 $ 155 199,607 $ 208,844 $ 6,769 $ 6,769 $ 5,486 $ 5,761 $ 5,934 $ 4,580 $ 4,888 $ 5,078 $ 5,154 $ 5,231 TOTAL ADMINISTRATION $ 11,349 $ 11,657 $ 10,564 $ 10,915 $ 11,165 COLLECTIONS /(CREDITS) APPLIED TO LEVY TOTAL DIRECTAND ADMIN COSTS $ 178,183 $ 203,180 $ 202,648 $ Reserve Collection /(Transfer) $ (19,944) $ (33,803) $ (52,500) $ Capital Improvement Fund Collection /(Transfer) $ - $ - $ - $ LED Conversion Project- Loan Repayment $ 143,529 $ 143,529 $ 148,563 $ Delinquency Contingency $ 2,874 $ 2,904 $ - $ LED Conversion Project- PG &E Rebate $ - TOTAL ADJUSTMENTS $ 126,459 Balance to Levy (Budgeted) $ 288,094 Actual Collection Variance $ - APPLIEDCHARGE $ 288,094 Total Revenue at Maximum Rate $ 288,094 Variance above /(below) Maximum Revenue $ - DISTRICTS STATISTICS $ 315,809 $ 298,711 $ $ (28,307) $ - $ $ 287,502 $ 298,711 $ $ 315,809 $ 298,711 $ Total Equivalent Benefit Units 14,896.26 Total Parcels 11,761 $186,915 11,876 Total Parcels Levied 10,959 124,228 11,072 Total Equivalent Benefit Units 14,896.26 $ 14,865.68 Proposed Levy per EBU (52,500) $ 19.34 Applied Levy per EDU $ 19.34 $ 19.34 Levy per EDU to fully fund $ 21.40 $ 23.13 Fund Balance Information Est. Beginning Reserve Fund Balance Reserve Fund Adjustments Prior /Penalities /Public Damage Interest Projected Reserve Balance at End of Year 210,522 $ 220,008 (50,000) $ (57,000 153,777 $ 160,864 103,777 $ 103,864 314,299 $ 323,872 303,156 $ 307,690 314,299 $ 323,872 12,294 12,355 12,417 11,492 11,722 11,956 15, 445.26 15, 675.10 15, 909.54 $ 19.34 $ 19.34 $ 19.34 $ 19.34 $ 19.34 $ 19.34 $ 22.74 $ 23.24 $ 23.94 $ 161,340 $186,915 $ 167,811 $ 124,228 $ 82,492 $ (19,944) $ (28,307) $ (52,500) $ (50,000) $ (57,000 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 2,420 $ 2,804 $ 2,517 $ 1,863 $ 1,237 $ 151,062 $ 167,811 $ 124,228 $ 82,492 $ 33,129 7 Harris & Associates,. Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 LEVY BREAKDOWN: June 7, 2016 Reserve Collection /(Transfer) — The 1972 Act pursuant to Chapter 1, Article 4 Section 22569 (a), provides for a District Reserve Fund for operations. Negative amounts shown for this budget item represent transfers from the Reserve Fund that reduces the Balance to Levy. Maintaining a fully funded Operating Reserve eliminates the need for the City to transfer funds from non - District accounts to pay for operational expenses during the first half of the Fiscal Year and also provides the District with sufficient funds to address any unforeseen or unusual expenditures that may occur during the year. Capital Improvement Fund Collection /(Transfer) — The 1972 Act pursuant to Chapter 5, beginning with Section 22660, provides for the District to establish by resolution an assessment installment plan for proposed improvements and expenditures that are greater than can be conveniently raised from a single annual assessment. Depending on the nature of the planned improvements, the collection of funds necessary to complete the project may be collected over a period up to thirty years, but typically not more than five years. The funds collected shall be accumulated in a separate improvement fund commonly referred to as a Capital Improvement Fund (CIF) and are not considered part of the regular maintenance of the improvements or the Reserve Fund. Because the money accumulated in the Capital Improvement Fund is for a specific planned project (budgeted separately), the amount shown for this item in the annual budget will typically be a positive number representing the amount being collected that year as part of the Balance to Levy. A negative number (Transfer) should only occur after the project has been completed and excess funds are being credited back to the District's regular accounts. The actual fund balances and expenditures for Capital Improvements are clearly identified under the Fund Balance Information section of the Budget. LED Conversion Project — Loan Repayment — Annual payments for the cost of LED conversion project. Delinquency Contingency — This is the estimated amount designated for delinquent property tax payments that the County is unable to collect in a given year. Balance to Levy — This is the total amount to be collected for the current fiscal year through the annual assessments (for special benefits). The Balance to Levy represents the sum of Total Direct and Administration Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Source, and the Contribution Replenishment. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll. Total Parcels Levied — The total number of parcels within the District that will receive the special benefits during the current fiscal year. Total EDUs — The total Equivalent Dwelling Units within the District applied to the parcels described above. Harris & Associates,. 0 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 4 METHOD OF APPORTIONMENT 4.1 GENERAL June 7, 2016 The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. In addition, pursuant to Article XIIID Section 4: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable and an agency shall separate the general benefits from the special benefits conferred on a parcel." 4.2 BENEFITANALYSIS Each of the improvements have been carefully reviewed by the City and the corresponding assessments have been proportionately spread to each parcel based on special benefits received from the improvements as determined at the time the District was established. General Benefits — In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly affect the properties within the District. Although the improvements include public areas, easements, right -of -ways and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Harris & Associates,. 0 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Special Benefits — The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the presence of public lighting in close proximity to those properties. The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically: 1) Enhanced deterrence of crime and the aid to police protection. 2) Increased nighttime safety on roads, streets and public areas. 3) Improved ability of pedestrians and motorists to see. 4) Improved ingress and egress to property. 5) Reduced vandalism and other criminal act and damage to improvements or property. 6) Improved traffic circulation and reduced nighttime accidents and personal property loss. The preceding special benefits contribute to the aesthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District. on- ssessa to Properties — Within the boundaries of the District, there are several types of properties that are considered to receive no special benefit from the District improvements and are therefore not assessed. These parcels include: 1) Publicly owned parcels that are reserved as Public Open Space or are developed as City Parks for active recreation and are maintained and serviced by the District; 2) Publicly owned wetland parcels; 3) Certain Public Utility parcels; 4) Privately owned open space parcels; and 5) Privately owned "sliver" parcels that have resulted from a lot line adjustment with an adjacent larger parcel. The adjacent larger parcels, of which these "sliver" parcels are a part, are assessed at the Residential Zone rate. 4.3 ASSESSMENT METHODOLOGY The special benefits received by each parcel within the District and each parcel's proportional annual assessment are calculated on the basis of a formula known as Equivalent Dwelling Units. The Equivalent Harris & Associates,. 10 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Dwelling Unit (EDU) method of apportionment establishes a proportional benefit relationship between the various parcels within the District and the improvements maintained by the District. The typical single family residential parcel is assigned 1.0 Equivalent Dwelling Unit (EDU) since it represents more than 73% of the total parcels within the District. EDU's are assigned to the other land uses based upon the property's development status, type of development (County of Alameda land use code) and property size as shown in the table below. Parcels determined to be vacant will be assessed at a reduced rate of 50 %, by multiplying the parcel's assigned EDU factor by 0.5 (or 50 %). Property Type EDU Factorl Basis Single - Family Residential (SFR) 1.00 Parcel Condominium Unit 1.00 Unit Duplex, Multi - Family Residential 2.00 Parcel Triplex, Multi - Family Residential 3.00 Parcel Fourplex, Multi - Family Residential 4.00 Parcel Apartments, Multi - Family Residential 6.00 Parcel Commercial /Industrial /Institutional 5.50 Acre Rural 0.50 Parcel Exempt, Cemeteries, Common Open Space 0.00 Parcel Single - Family Residential (SFR) — (County land use 1x) this land use identifies properties that are developed for single - family residential use and are assigned a factor of 1.00 EDU per parcel. This is the base value that all other land use types are compared and weighted against (i.e. Equivalent Dwelling Unit EDU). This land use classification may include, but is not limited to lots or parcels identified as single - family residential homes, planned development (tract or townhouse type), and modular /manufactured single - family residential unit. Condominium Unit — (County land use 73) this land use identifies properties that are fully subdivided residential parcels that have more than one residential unit developed on the property. This land use is assigned 1.00 EDU per unit for properties that the number of units can be identified. Duplex, Multifamily Residential — (County land use 22) this land use identifies properties that are developed for multifamily residential use and are assigned a factor of 2.00 EDU per parcel. This land use classification includes double or duplex units. Triplex, Multifamily Residential — (County land use 23) this land use identifies properties that are developed for multifamily residential use and are assigned a factor of 3.00 EDU per parcel. This land use classification includes triplex units; double or duplex together with a single - family home. Fourplex, Multifamily Residential — (County land use 24) this land use identifies properties that are developed for multifamily residential use and are assigned a factor of 4.00 EDU per parcel. This land use classification includes four living units; a fourplex, a triplex and a single - family home, or two doubles or duplexes. Harris & Associates,. 11 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Apartment Complex, Multifamily Residential — (County land use 7x, except 73) This land use identifies properties that are developed for multifamily residential use of five (5) or more units, and are assigned a factor of 6.00 EDU per parcel. This land use classification may include, but is not limited to, lots or parcels identified as vacant apartment land capable of supporting 5 or more units, residential property converted to 5 or more units, cooperatives, restricted income properties, fraternities, sororities, church homes, multiple residential (5 or more units), and residential high -rise (7 or more units). Commercial — (County land use 3x, 8x, 9x) this land use identifies properties that are considered improved commercial use and are assigned a factor of 5.50 EDU per gross acre. This land use classification may include, but is not limited to, lots or parcels identified as car washes, commercial garages, automotive dealerships, parking lots, parking garages service stations, funeral homes, nursing or boarding homes, hospitals, hotels /motels, banks, medical - dental, single and multi -story office buildings, commercial land, department stores, discount stores, restaurants, shopping centers, supermarkets. Industrial — (County land use 4x) this land use identifies properties that are developed for industrial use and are assigned a factor of 5.50 EDU per gross acre. This land use classification may include, but is not limited to lots, or parcels identified as vacant industrial land, warehouses, light and heavy industrial, nurseries, sand and gravel quarries, salt ponds, trucking and distribution terminals, wrecking yards, and miscellaneous industrial. Institutional — (County land use 6x, except 65) this land use identifies properties that are developed for institutional use and are assigned a factor of 5.50 EDU per gross acre. This land use classification may include, but is not limited to, lots or parcels identified as vacant land that is a necessary part of an institutional property, improved government -owned property, low income housing (secured P.I.'s only), golf courses, schools, churches, lodge- halls, clubhouses, and other institution properties. Rural Property — (County land use 5x) this land use identifies properties that are defined as rural lands and are assigned a factor of 0.50 EDU per parcel. This land use classification may include, but is not limited to, lots or parcels identified as rural residential home sites, one or more mobile homes on rural home sites, rural property with significant commercial or industrial use, property used for agriculture (more than 10 acres), rural land in transition to higher land use classification, and rural land under non - renewal of Williamson Act. Exempt Property, Cemeteries & Common Open Space — (County land use 0, 03 -05, 65) this land use identifies properties that are exempt from assessment and are assigned 0.00 EDU. This land use classification may include, but is not limited to, lots or parcels identified as exempt public agencies; property leased or owned by public utilities, cemeteries, and planned development common areas. Harris & Associates,. 12 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 5 ASSESSMENT ROLL June 7, 2016 The proposed assessment and the amount of the assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are contained in the Assessment Roll on file in the Office of the City Clerk of the City of Dublin, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Alameda and those records are, by reference, made part of this report. The assessments shown will be submitted to the County Auditor /Controller, and included on the property tax roll for each parcel shown in the assessment roll for fiscal year 2016 -17. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of the parcels as shown on the Alameda County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Alameda County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Harris & Associates,. 13 Engineer's Report Street Lighting Maintenance District No. 1983 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 APPENDIX A —DISTRICT BOUNDARY MAP c r. R, co 4 i f pp mn Q g r f Rey. m a N Q vi Ea Y m — U ! u r Harris & Associates,. 14 RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING PRELIMINARY ENGINEER'S REPORT, CONFIRMING DIAGRAM AND ASSESSMENT CITY OF DUBLIN STREET LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1983 -1 WHEREAS, by its Resolution No. 29 -16, a Resolution Directing Preparation of Annual Report for City of Dublin Street Lighting Maintenance Assessment District No. 1983 -1 (the "District "), this Council designated the City Engineer as Engineer of Work and ordered said Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 29 -16 and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and finds that each and every part of said report is sufficient and that said report neither requires nor should be modified in any respect; NOW, THEREFORE, BE IT RESOLVED a) That the Engineer's estimate of the itemized and total costs and expenses of the acquisition of improvements and maintaining said improvements and of the incidental expenses in connection therewith, as contained in said report be, and each of them are hereby preliminarily approved and confirmed; b) That the diagram showing the assessment district, description of the improvements to be acquired and maintained, and the boundaries and dimensions of the respective lots and parcels of land within said District, as contained in said report be, and it is hereby preliminarily approved and confirmed; c) That the assessment of the total amount of the cost and expenses of the proposed acquisition and maintenance of said improvements upon the several lots and parcels of land in said District in proportion to the estimated benefits to be received by such lots and parcels, respectively, from said acquisition and maintenance, and of the expenses incidental thereto, as contained in said report be, and they are hereby preliminarily approved and confirmed. PASSED, APPROVED AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPOINTING TIME AND PLACE OF HEARING PROTESTS IN RELATION TO PROPOSED ASSESSMENTS CITY OF DUBLIN STREET LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1983 -1 WHEREAS, by its Resolution No. 29 -16, a resolution directing preparation of annual report for City of Dublin Street Lighting Maintenance Assessment District (the "District "), this Council designated the City Engineer as Engineer of Work and ordered that Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 29 -16, and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and each and every part thereof, and finds that each and every part of said report is sufficient; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE ACT, AS FOLLOWS: Section 1 Intention: The City Council hereby declares that it is its intention to seek the Annual Levy of the Districts pursuant to the Act, over and including the land within the District boundaries, and to levy and collect assessments on all such land to pay the annual costs of the improvements. The City Council finds that the public's best interest requires such levy and collection. Section 2 District Boundaries: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District, within the boundaries of the City of Dublin, within the County of Alameda, State of California. Section 3 Description of Improvements: The improvements within the District may include, operation, maintenance, acquisition and servicing of street lighting and appurtenant facilities within the boundaries of the District. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a satisfactory operating condition. Section 4 Proposed Assessment Amounts: For Fiscal Year 2016 -2017, the proposed assessments are outlined in the Engineer's Report which details any changes or increases in the annual assessment. Section 5 Public Hearing(s): The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act. Section 6 Notice: The City Clerk is hereby directed to give notice of said hearing to all property owners in the District by causing the publishing of this Resolution once a week in a local newspaper published and circulated in the City, for two consecutive weeks not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this Resolution in official posting locations customarily used by the City Council for the posting of notices. Any interested person may file a written protest with the City Clerk prior to the conclusion of the Public Hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 21, 2016, at 7:00 p.m. or as soon thereafter as feasible in the City Council Chambers, located at 100 Civic Plaza, Dublin. Section 8 The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. PASSED, APPROVED, AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor II MEN MEN uuuu IIIVo IIIVo Iluo Landscape and Lighting District No. 1983 -2 Fiscal Year 2016 -17 Forthe CITY OF DUBLIN Alameda County, California June 7, 2016 MHarris & Associates Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 rable of Contents June 7, 2016 1 OVERVIEW ............................................................................................................... ..............................1 1.1 INTRODUCTION ............................................................................................... ..............................1 General Description of the District ......................................................................... ..............................1 Compliance with the California Constitution .......................................................... ..............................1 Summary of Proposed Assessment and Expenditures .......................................... ............................... 2 2 IMPROVEMENTS .................................................................................................... ............................... 3 3 BUDGET ................................................................................................................... ..............................5 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE ................................................ ..............................9 4 METHOD OF APPORTIONMENT ............................................................................. .............................11 4.1 GENERAL ........................................................................................................ .............................11 4.2 BENEFIT ANALYSIS .......................................................................................... .............................11 GeneralBenefits ..................................................................................................... .............................11 SpecialBenefits ...................................................................................................... .............................11 Non - Assessable Properties .................................................................................... .............................12 4.3 ASSESSMENT METHODOLOGY ....................................................................... .............................13 5 ASSESSMENT ROLL ................................................................................................. .............................14 Appendix A - Boundary Map Harris & Associates,. Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT June 7, 2016 The undersigned respectfully submits the enclosed report as directed by the City Council. The undersigned certifies that he is a Professional Engineer, registered in the State of California. DATED: June 7, 2016 ya �� rn � m Y N0. 50255 s� �� BY: K. Dennis gelho e OF F' C g qT o Assessment Engineer F AG�� R.C.E. No. 50255 Harris & Associates,. Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 1 OVERVIEW 1.1 INTRODUCTION June 7, 2016 The City of Dublin ( "City ") levies and collects special assessments on parcels within the City of Dublin Landscape and Lighting Assessment District No. 1983 -2 ( "District ") in order to maintain the landscaping and irrigation improvements within the District. The assessments and methods of apportionment described in this Report utilize commonly accepted assessment engineering practices and have been calculated and proportionately spread to each parcel based on the special benefits received as approved by the City Council at the time the District was formed. The District was initially formed in 1983 to provide a dedicated source of funding for the on -going maintenance of street landscaping within Tract 4719. The District originally included the maintenance of Stagecoach Park and the landscaping within Stagecoach Road north of the City Limit; however those improvements are no longer funded by the District. Currently, the District includes only the roadway landscaping along Stagecoach Road and on the "interior slopes" (Coral Way and Agate Way) within the Dublin Hills Estates development. The maintenance cost for Stagecoach Park, as well as the undeveloped Dougherty Hills Park, is paid by the City through the Park Maintenance Operating Budget and is not a part of this Assessment District. Assessments are levied annually within the District pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ( "1972 Act "). All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and are in compliance with the provisions of the California Constitution Article XIIID ( "Article XIIID "), which was enacted with the passage of Proposition 218 in November 1996. Pursuant to Article XIIID Section 5, certain existing assessments were exempt from the substantive and procedural requirements of Article XIIID Section 4. Specifically, Article XIIID Section 5(a) exempted: "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. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4." The City has determined that the annual assessments originally established for the District were for the maintenance and operation of landscaping within the public street rights -of -way or public easements. Harris & Associates,. Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 June 7, 2016 However, in 2003/2004, the City conducted a public hearing that included a mailed ballot to all of the property owners in this District proposing an increased assessment in order to maintain and replace certain landscaping improvements. In accordance with the requirements of Prop 218 the property owners approved a 10% increase in assessment rates, and the addition of an escalation clause for succeeding years that allows the maintenance cost to increase according to the Consumer Price Index and the utility cost to increase according to the actual cost of utilities. Any future increase in the assessment rate in excess of the maximum allowable rate or substantial changes in the services provided would require the approval of the property owners subject to the assessment based upon a mailed ballot which would be sent to each property owner pursuant to the provisions of the California Constitution Article XIIID. A summary of the assessments to be levied for each property type are shown in the table below Property Type Assessment Basis Rate Single - Family Residential (SFR) $ 361.63 Parcel Multi - Family Residential (MFR) $ 61.12 Unit Exempt, Common Open Space, Public Land $ 0.00 Parcel Harris & Associates,. 2 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 2 IMPROVEMENTS June 7, 2016 The District provides for the continued maintenance and servicing of the landscaping and irrigation improvements within the public right -of -way and public easement along Stagecoach Road between the limits of Amador Valley Boulevard and the northerly City Limit. In addition, the District also provides for the maintenance of the slopes, including landscaping and irrigation, within the public right -of -way for the slope areas along the rear of Lots 80 through 86, and 37 through 48 within Tract 4719. As generally defined in the 1972 Act, maintenance and servicing of the improvements may include one or any combination of the following: 1) The installation or planting of landscaping. The installation or construction of statuary, fountains, and other ornamental structures and facilities. 2) 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, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. 3) The maintenance or servicing, or both, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including, but not limited to: a. Repair, removal, or replacement of all or any part of any improvements; b. Grading, clearing, removal of debris, the installation, repair or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c. Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; d. The removal of trimmings, rubbish, debris, and other solid waste; e. The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. f. Electric current or energy, gas, or other agent for the lighting or operation of any other improvements. g. Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. 4) Incidental expenses associated with the improvements including, but not limited to: a. The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b. The costs of printing, advertising, and the publishing, posting and mailing of notices; c. Compensation payable to the County for collection of assessments; d. Compensation of any engineer or attorney employed to render services; e. Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; and, f. Costs associated with any elections held for the approval of a new or increased assessment. Harris & Associates,. 3 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 Pursuant to the 1972 Act: June 7, 2016 "Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or any part of any improvement. "Service" or "servicing" means the furnishing of electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. Drawings showing the specific locations of the improvements are on file in the City's Engineering Department and are made a part of this report by reference. Harris & Associates,. 4 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 3 BUDGET June 7, 2016 All landscape and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed budget for District is shown on the following page. This includes an estimate of the costs of utilities, operations, services, administration and maintenance associated with the improvements, including all labor, personnel, equipment, materials and administrative expenses. The summary also shows the estimated fund balance, and the projected contribution/ (transfer) based upon the estimated expenditures and assessment revenue. In FY 2016 -17, proposed improvements include the replacement of a deteriorating wooden retaining wall with stone mason. New or replacement planting may occur, depending upon the drought restrictions. Projected budgets are also shown for the next 2 fiscal years. For fiscal year 2017 -18 and 2018 -19, the budget assumes a 15% increase for water, and a 3% increase for electricity rates. The following describes the services and costs shown in the budget. DIRECT COSTS: Maintenance Tree — The cost of installation and maintenance of trees and plantings along the street frontages within the District. Maintenance Landscape — The cost of maintenance and repair of the landscaping and open space areas within the District. Utilities Water — The cost of furnishing water for maintenance of landscape and irrigation systems within the District. Utilities Electricity — The cost of electricity for maintenance of landscape, powering of irrigation systems, and entry lighting within the District. Miscellaneous Expenses — Costs that cannot easily be categorized into any of the other Direct Costs defined above. ADMINISTRATIVE COSTS: District Administration, Consulting — The costs of contracting with professionals to provide services specific to the levy administration, including preparation of the Engineer's Report, resolutions, and levy submittal to the County. These fees can also include any additional administrative, legal, or engineering services specific to the District such as the cost to prepare and mail notices of the public meeting and hearing. County per Parcel Fee — The cost to the District for the County to collect assessments on the property tax bills. Alameda County charges 1.7% of the total levy amount. Harris & Associates,. 5 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 June 7, 2016 ADMINISTRATION COSTS City of Dublin 350.61 $ $ 363.01 District Administration $ 3,420 Landscape and Lighting District 1983 -2 $ 2,772 $ 2,911 $ 2,998 Public Works Administration $ - Adjusted Estimated Proposed Forecast Forecast $ 1,451 Budget Expenses Budget 1,545 $ 1,667 Budget Budget $ 4,870 FY 2015 -16 FY 2015 -16 FY 2016 -17 FY 2017 -18 FY 2018 -19 DIRECT COSTS $ $ TOTAL ADJUSTMENTS $ Maintenance - Tree(General) $ 23,300 $ 23,300 $ 23,150 $ 24,200 $ 24,926 Maintenance - Landscape (MCE) $ 24,917 $ 24,917 $ 28,500 $ 28,500 $ 29,925 Utilities - Water $ 29,120 $ 20,000 $ 30,600 $ 32,200 $ 37,030 Utilities - Electricity $ 970 $ 970 $ 1,350 $ 1,430 $ 1,473 Miscellaneous Expenses $ 160 $ 160 $ 180 $ 180 $ 185 2,023 TOTAL DIRECT $ 78,467 $ 69,347 $ 83,780 $ 86,510 $ 93,539 ADMINISTRATION COSTS $ 350.61 $ $ 363.01 District Administration $ 3,420 $ 3,420 $ 2,772 $ 2,911 $ 2,998 Public Works Administration $ - $ - $ - $ - $ - County per Parcel Fee $ 1,451 $ 1,450 $ 1,494 $ 1,545 $ 1,667 TOTAL ADMINISTRATION $ 4,871 $ 4,870 $ 4,266 $ 4,456 $ 4,665 COLLECTIONS /(CREDITS) APPLIED TO LEVY TOTAL DIRECTANDADMIN COSTS $ 83,338 $ 74,217 $ 88,046 $ 90,966 $ 98,205 Reserve Collection /(Transfer) $ 350.61 $ $ 363.01 $ $ $ Capital Improvement Fund Collection /(Transfer) $ 31,994 $ $ 59.26 $ $ $ General Fund Loan Repayment /(Advance) $ 66.97 $ $ $ $ Other Revenues /(General Fund Contributions) $ $ $ $ $ TOTAL ADJUSTMENTS $ $ $ $ $ Balance to Levy (Budgeted) $ 83,338 $74,217.00 $ 88,046 $ 90,966 $ 98,205 Total Revenue at Maximum Rate $ 102,137 $ 103,863 $ 106,979 $ 110,188 $ 113,494 Variance above /(below) Maximum Revenue $ (18,799) $ (29,646) $ (18,933) $ (19,223) $ (15,289) Actual Collection Variance $ 2,023 $ 11,943 $ - $ - $ - Applied Charge $ 85,361 $ 86,160 $ 88,046 $ 90,966 $ 98,205 DISTRICTS STATISTICS Total Parcels Total Parcels Levied Total SFR Count Total MFR Count Fund Balance Information Est. Beginning Reserve Fund Balance Reserve Fund Adjustments Prior /Penalities /Public Damage Interest Projected Reserve Balance at End of Year Assessment Revenue Calculation 715 715 715 715 715 703 703 703 703 703 150 150 150 150 150 553 553 553 553 553 $ 42,848 $ 80,826 $ 93,577 $ 94,513 $ 95,458 $ 11,943 $ - $ - $ - $ 428 $ 808 $ 936 $ 945 $ 955 $ 43,276 $ 93,577 $ 94,513 $ 95,458 $ 96,413 Balance to Levy for SFR (61.61% of Total Applied Levy) $ 51,345 Applied Levy per SFR $ 350.61 Maximum Levy per SFR prior year $ 363.01 Maximum Levy per SFR current year $ 445.52 Balance to Levy for MFR (38.39% of Total Applied Levy) $ 31,994 Applied Levy per MFR $ 59.26 Maximum Levy per MFR prior year $ 61.38 Maximum Levy per MFR current year $ 66.97 0 $ 51,345 $ 54,245 $ 56,044 $ 60,504 $ 353.90 $ 361.63 $ 373.63 $ 403.36 $ 363.01 $ 445.52 $ 457.52 $ 471.25 $ 445.52 $ 457.52 $ 471.25 $ 485.39 $ 31,994 $ 33,801 $ 34,922 $ 37,701 $ 59.81 $ 61.12 $ 63.15 $ 68.17 $ 61.38 $ 66.97 $ 76.40 $ 87.48 $ 66.97 $ 76.40 $ 87.48 $ 94.66 Harris & Associates,. Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 LEVY BREAKDOWN: June 7, 2016 Reserve Collection /(Transfer) — The 1972 Act pursuant to Chapter 1, Article 4 Section 22569 (a), provides for a District Reserve Fund for operations. Negative amounts shown for this budget item represent transfers from the Reserve Fund that reduces the Balance to Levy. Maintaining a fully funded Operating Reserve eliminates the need for the City to transfer funds from non - District accounts to pay for operational expenses during the first half of the fiscal year and also provides the District with sufficient funds to address any unforeseen or unusual expenditures that may occur during the year. Capital Improvement Fund Collection /(Transfer) — The 1972 Act pursuant to Chapter 5, beginning with Section 22660, provides for the District to establish by resolution an assessment installment plan for proposed improvements and expenditures that are greater than can be conveniently raised from a single annual assessment. Depending on the nature of the planned improvements, the collection of funds necessary to complete the project may be collected over a period up to thirty years, but typically not more than five years. The funds collected shall be accumulated in a separate improvement fund commonly referred to as a Capital Improvement Fund (CIF) and are not considered part of the regular maintenance of the improvements or the Reserve Fund. Because the money accumulated in the Capital Improvement Fund is for a specific planned project (budgeted separately), the amount shown for this item in the annual budget will typically be a positive number representing the amount being collected that year as part of the Balance to Levy. A negative number (Transfer) should only occur after the project has been completed and excess funds are being credited back to the District's regular accounts. The actual fund balances and expenditures for Capital Improvements are clearly identified under the Fund Balance Information section of the Budget. General Fund Loans Repayment /(Advances) — This item represents repayments of amounts that had been temporarily advanced to the District from other revenue sources (usually the General Fund) or represents funds being loaned to the District for the current Fiscal Year that must be repaid by future assessments. Similar to the Reserve Collection /(Transfer) line item, this item directly impacts the Reserve Fund Balances either positively or negatively. Repayments are shown as a positive number and represent additional monies being collected in the current annual assessment to repay a prior loan. These loans are typically for capital improvement expenditures or unforeseen expenditures incurred in prior years and Reserve Fund monies were not sufficient to cover the expenses. To ensure the ongoing operation and maintenance of the improvements, the City may advance funds to the District as a temporary loan to meet current expenditures, and collect repayment of the loan through the annual assessments the following year or possibly over several years. Generally, all available Reserve Funds are exhausted before a temporary loan is advanced to the District and the Beginning Reserve Fund Balance will be a negative number indicating the loan amount still outstanding. A loan for the current Fiscal Year (Advance) is shown as a negative number. If the District is expected to incur significant expenditures in the current Fiscal Year for special services or capital improvements (upgrades or refurbishing of the improvements) and the proposed assessment revenues (annual assessments) and /or available Reserve Funds are not sufficient to cover the expenditures, the City may advance funds to the District as a temporary loan to meet the Harris & Associates,. 7 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 June 7, 2016 proposed expenditures. Generally, all available Reserve Funds must be exhausted before a temporary loan is advanced to the District and any funds temporarily loaned in excess of the available Reserve Funds will be reflected as a negative Ending Reserve Fund Balance. This negative Reserve Fund Balance will be repaid and replenished through future assessment revenues. Other Revenue /General Fund (Contributions) — This item includes additional funds designated for the District that are not annual assessments. These funds are added to the District account to reduce assessments, and may be from non - District or District sources including City General Fund Contributions and /or interest earnings. Any funds indicated on this line will be shown as a negative number indicating a reduction in the amount to be levied and represent funds that do not have to be repaid. Balance to Levy — This is the total amount to be collected for the current Fiscal Year through the annual assessments (for special benefits). The Balance to Levy represents the sum of Total Direct and Administration Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Source, and the Contribution Replenishment. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll. Total Parcels —The total number of parcels within the District including exempt parcels. Total Parcels Levied — The total number of parcels within the District that will receive the special benefits during the current Fiscal Year. Total EDUs — The total Equivalent Dwelling Units within the District applied to the parcels described above. Balance to Levy for SFR — The total assessment to single - family property owners in the Dublin Hills Estates development. Balance to Levy for MFR — The total assessment to property owners of condominium or apartment units in the Amador Lakes Apartments development. Maximum Levy per SFR (Prior Fiscal Year) — This is the maximum rate allowable in Fiscal Year 2016 -17 to assess single - family property owners within the District. Maximum Levy per MFR (Prior Fiscal Year) — This is the maximum rate allowable in Fiscal Year 2016 -17 to assess property owners of a multifamily residential unit within the District. Maximum Levy per SFR (Current Fiscal Year) — This is the maximum rate allowable per SFR parcel to assess property owners within the District, in accordance with Proposition 218, adjusted for inflation as described in the Method of Apportionment. Maximum Levy per MFR (Current Fiscal Year) — This is the maximum rate allowable per MFR unit to assess property owners within the District, in accordance with Proposition 218, adjusted for inflation as described in the Method of Apportionment. Harris & Associates,. 0 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Inflationary Factor — Annual percentage increase in the San Francisco - Oakland -San Jose Area Consumer Price Index for "All Urban Wage Earners and Clerical Workers," applies to all cost except water and electricity, plus any additional increase in the utility cost of water and electricity. Each fiscal year the City shall identify the change in the Index for April to April of the preceding year. 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE It is recognized that the cost of maintaining the District improvements increases slightly every year as a result of inflation. In Fiscal Year 2003 -04, the property owners approved a formula for increasing assessments for each future fiscal year to offset increases in costs due to inflation. The maximum assessment amount allowed for each fiscal year shall be increased in an amount equal to the annual percentage increase of the local San Francisco - Oakland -San Jose Area Consumer Price Index ( "Index ") for "All Urban Wage Earners and Clerical Workers" plus any actual increase in the cost of utilities (water and power). Each fiscal year the City shall identify the annual percentage difference in the Index between April of the current fiscal year and that of the previous April. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. Item Estimated Budget FY 2016 -17 Forecast Budget FY 2017 -18 Forecast Budget FY 2018 -19 CPI April Prior Year 257.622 N/A N/A CPI April Current Year 264.565 N/A N/A Increase /(Decrease) 2.695% 2.000% 2.000% Prior Year Maximum Levy per SFR $ 373.68 $ 457.52 $ 471.25 Prior Year Maximum Levy per MFR $ 63.18 $ 76.40 $ 87.48 Current Year Maximum Levy per SFR CPI only $ 361.63 $ 373.63 $ 403.36 Current Year Maximum Levy per MFR CPI only $ 64.88 $ 77.93 $ 89.23 Combined Utility Costs Current Year $ 31,950 $ 33,630 $ 38,503 Combined Utility Costs Prior Year $ 20,970 $ 20,970 $ 31,950 Change in Combined Utility Costs 52.36% 60.37% 20.51% Change in Combined Utilities $ 10,980 $ 12,660 $ 6,553 Spread to SFR (61.6 %) $ 6,764 $ 7,799 $ 4,037 Spread to MFR (38.4 %) $ 4,216 $ 4,861 $ 2,516 Amount per SFR for Utilities $ 45.09 $ 51.99 $ 26.91 Amount per MFR for Utilities $ 7.62 $ 8.79 $ 4.55 Maximum Levy per SFR current year $ 457.52 $ 471.25 $ 485.39 Maximum Levy per MFR current year $ 76.40 $ 87.48 $ 94.66 Harris & Associates,. 0 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 June 7, 2016 In the event that the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the assessment without applying the adjustment formula to the amount levied. If the budget and assessments for a district require an increase greater than the adjustment set forth in the formula, then the proposed increase would be subject to approval by the District property owners. Each fiscal year, the maximum assessment rate shall increase at the maximum amount allowable regardless of whether the increase is levied to the parcels within the District. Harris & Associates,. 10 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 4 METHOD OF APPORTIONMENT 4.1 GENERAL June 7, 2016 The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. In addition, pursuant to Article XIIID Section 4: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable and an agency shall separate the general benefits from the special benefits conferred on a parcel." 4.2 BENEFITANALYSIS Each of the improvements have been carefully reviewed by the City and the corresponding assessments have been proportionately spread to each parcel based on special benefits received from the improvements as determined at the time the District was established. General Benefits — In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly affect the properties within the District. Although the improvements include public areas, easements, right -of -ways and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Special Benefits — The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability of those properties enhanced by the presence of well- maintained landscaping in close proximity to those properties. Harris & Associates,. 11 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 The special benefits associated with landscape improvements are specifically: June 7, 2016 1) Enhanced desirability of properties through association with the improvements. 2) Improved aesthetic appeal of properties providing a positive representation of the area and properties. 3) Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. 4) Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. 5) Increased sense of pride in ownership of property within the District resulting from well - maintained improvements associated with the properties. 6) Enhanced quality of life through well- maintained green space and landscaped areas. 7) Reduced criminal activity and property - related crimes (especially vandalism) against properties in the District through well- maintained surroundings and amenities including abatement of graffiti. 8) Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The preceding special benefits contribute to the aesthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. on- ssesso to Properties — Within the boundaries of the District, there are several types of properties that are considered to receive no special benefit from the District improvements and are therefore not assessed. These parcels include: 1) Publicly owned parcels that are reserved as Public Open Space or are developed as City Parks for active recreation and are maintained and serviced by the District; 2) Publicly owned wetland parcels; 3) Certain Public Utility parcels; 4) Privately owned open space parcels; and 5) Privately owned "sliver" parcels that have resulted from a lot line adjustment with an adjacent larger parcel. The adjacent larger parcel, of which these "sliver" parcels are a part, are assessed at the Residential Zone rate. Harris & Associates,. 12 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 4.3 ASSESSMENT METHODOLOGY June 7, 2016 The special benefits received by each parcel within the District and each parcel's proportional annual assessment are calculated as follows: • Sixty -one and six tenths percent (61.6 %) spread equally to the 150 single family homes of Dublin Estates; and • Thirty -eight and four tenths percent (38.4 %) spread equally among the 553 apartments of Amador Lakes Apartments. Harris & Associates,. 13 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 5 ASSESSMENT ROLL June 7, 2016 The proposed assessment and the amount of the assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are shown in Appendix B. The description of each lot or parcel is part of the records of the Assessor of the County of Alameda and those records are, by reference, made part of this report. The assessments shown will be submitted to the County Auditor /Controller, and included on the property tax roll for each parcel shown in the assessment roll for Fiscal Year 2016 -17. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of the parcels as shown on the Alameda County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Alameda County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Harris & Associates,. 14 Engineer's Report Landscape and Lighting District No. 1983 -2 City of Dublin Fiscal Year 2016 -17 APPENDIX A - ASSESSMENT DIAGRAM June 7, 2016 Harris & Associates,. 15 RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING PRELIMINARY ENGINEER'S REPORT, CONFIRMING DIAGRAM AND ASSESSMENT LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1983 -2 WHEREAS, by its Resolution No. 25 -16, a Resolution Directing Preparation of Annual Report for City of Dublin Landscaping and Lighting Maintenance Assessment District No. 1983- 2 (the "District "), this Council designated the City Engineer as Engineer of Work and ordered said Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 25 -16 and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and finds that each and every part of said report is sufficient; and that said report neither requires nor should be modified in any respect; NOW, THEREFORE, BE IT RESOLVED a) That the Engineer's estimate of the itemized and total costs and expenses of the acquisition of improvements and maintaining said improvements and of the incidental expenses in connection therewith, as contained in said report be, and each of them are hereby preliminarily approved and confirmed; b) That the diagram showing the assessment district, description of the improvements to be acquired and maintained, and the boundaries and dimensions of the respective lots and parcels of land within said District, as contained in said report be, and it is hereby preliminarily approved and confirmed; c) That the assessment of the total amount of the cost and expenses of the proposed acquisition and maintenance of said improvements upon the several lots and parcels of land in said District in proportion to the estimated benefits to be received by such lots and parcels, respectively, from said acquisition and maintenance, and of the expenses incidental thereto, as contained in said report be, and they are hereby preliminarily approved and confirmed. PASSED, APPROVED AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPOINTING TIME AND PLACE OF HEARING PROTESTS IN RELATION TO PROPOSED ASSESSMENTS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1983 -2 WHEREAS, by its Resolution No. 25 -16, a resolution directing preparation of annual report for City of Dublin Landscaping and Lighting Maintenance Assessment District 1983 -2 (the "District "), this Council designated the City Engineer as Engineer of Work and ordered that Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 25 -16, and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and each and every part thereof, and finds that each and every part of said report is sufficient; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE ACT, AS FOLLOWS: Section 1 Intention: The City Council hereby declares that it is its intention to seek the Annual Levy of the Districts pursuant to the Act, over and including the land within the District boundaries, and to levy and collect assessments on all such land to pay the annual costs of the improvements. The City Council finds that the public's best interest requires such levy and collection. Section 2 District Boundaries: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District, within the boundaries of the City of Dublin, within the County of Alameda, State of California. Section 3 Description of Improvements: The improvements within the District may include operation, maintenance, acquisition and servicing of landscaping and appurtenant facilities within the boundaries of the District. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a satisfactory operating condition. Section 4 Proposed Assessment Amounts: For Fiscal Year 2016 -2017, the proposed assessments are outlined in the Engineer's Report which details any changes or increases in the annual assessment. Section 5 Public Hearing(s): The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act. Section 6 Notice: The City Clerk is hereby directed to give notice of said hearing to all property owners in the District by causing the publishing of this Resolution once a week in a local newspaper published and circulated in the City, for two consecutive weeks not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this Resolution in official posting locations customarily used by the City Council for the posting of notices. Any interested person may file a written protest with the City Clerk prior to the conclusion of the Public Hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 21, 2016, at 7:00 p.m. or as soon thereafter as feasible in the City Council Chambers, located at 100 Civic Plaza, Dublin. Section 8 The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. PASSED, APPROVED, AND ADOPTED this 7th day of June, 2016, by the following vote. AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor II MEN MEN uuuu IIIVo IIIVo Iluo Landscape and Lighting District No. 1986 -1 Fiscal Year 2016 -17 Forthe CITY OF DUBLIN Alameda County, California June 7, 2016 MHarris & Associates Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 rable of Contents June 7, 2016 1 OVERVIEW .............................................................................................................. ............................... 2 1.1 INTRODUCTION .............................................................................................. ............................... 2 General Description of the District ........................................................................ ............................... 2 Compliance with the California Constitution ......................................................... ............................... 2 Summary of Proposed Assessment and Expenditures ........................................... ..............................3 2 IMPROVEMENTS ..................................................................................................... ..............................4 3 BUDGET ................................................................................................................... ..............................5 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE ................................................ ..............................8 4 METHOD OF APPORTIONMENT ............................................................................. .............................10 4.1 GENERAL ........................................................................................................ .............................10 4.2 BENEFIT ANALYSIS .......................................................................................... .............................10 GeneralBenefits ..................................................................................................... .............................10 SpecialBenefits ...................................................................................................... .............................11 Non - Assessable Properties .................................................................................... .............................11 4.3 ASSESSMENT METHODOLOGY ....................................................................... .............................12 5 ASSESSMENT ROLL ................................................................................................. .............................13 Appendix A - Boundary Map Harris & Associates,. Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT June 7, 2016 The undersigned respectfully submits the enclosed report as directed by the City Council. The undersigned certifies that he is a Professional Engineer, registered in the State of California. /OFESS/O DATED: June 7, 2016 KurvoFyl� Y Y NO. 50255 ' s�qT� QvIlL BY: K. Dennis Klin hofer OF' cAG��o Assessment Engineer R.C.E. No. 50255 Harris & Associates,. Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 1 OVERVIEW 1.1 INTRODUCTION June 7, 2016 The City of Dublin ( "City ") levies and collects special assessments on parcels within Landscaping and Lighting District No. 1986 -1 ( "District ") in order to maintain the improvements within the Villages at Willow Creek area. The assessments and methods of apportionment described in this Report utilize commonly accepted assessment engineering practices and have been calculated and proportionately spread to each parcel based on the special benefits received as approved by the City Council at the time the District was formed. The District was initially formed in 1986 to provide a dedicated source of funding for the ongoing maintenance of landscaping, including fencing and soundwalls, along the west side of Dougherty Road from Amador Valley Boulevard to the northerly City Limit, along Amador Valley Boulevard from Dougherty Road to Wildwood Road, along Wildwood Road and Fall Creek Road, and certain landscaped areas within the Ridgecreek single - family home development. Landscaping within the condominium and apartment developments is the responsibility of the homeowners' association or property owner for those individual developments. A Diagram showing the exterior boundaries of the District is provided in this Report in Appendix A. Assessments are levied annually within the District pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ( "1972 Act "). All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and are in compliance with the provisions of the California Constitution Article MID ( "Article MID"), which was enacted with the passage of Proposition 218 in November 1996. In Fiscal Year 2001 -02, the assessments in this District were increased by 54% with the approval of property owners in compliance with the requirements of Proposition 218. The increase in the assessment rate was required as the reserve funds had become depleted and could no longer be used to offset utility and maintenance cost increases. The property owners also approved an escalation clause for future years that allows the assessment to increase according to the annual percentage change of the Consumer Price Index and the utility cost to increase according to the actual cost of utilities. Any future increase in the assessment rate in excess of the maximum allowable rate or substantial changes in the services provided would require the approval of the property owners subject to the assessment based upon a mailed ballot which would be sent to each property owner. Harris & Associates,. 2 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 Wl June 7, 2016 A summary of the assessments to be levied for each property type is shown in the table below. Property Type EDU Assessment Basis Factor Rate Single - Family Residential (SFR) 1.00 $ 221.53 Parcel Multi - Family Residential (MFR) 0.50 $ 110.76 Unit Commercial 4.00 $ 886.12 Parcel Exempt, Common Open Space, Public Land 0.00 $ 0.00 Parcel Harris & Associates,. 3 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 2 IMPROVEMENTS June 7, 2016 The District provides for the continued maintenance and servicing of landscaping, including fencing and soundwalls within the public right -of -ways and within public easements within private streets which provide special benefit to parcels and properties within the District. The specific improvements maintained by the District include: a. The median and roadside landscaping along the north side of Willow Creek Drive. b. Roadside landscaping along Shady Creek Drive within Lots 1, 2, 3, 4, 5, 6, 15, 16, 37, 38, and south of Lot 145, all within Tract 5511. c. Roadside landscaping, wall, fence, and pathway improvements along the west side of Dougherty Road, between Amador Valley Boulevard and the northerly City Limit line, and along the north side of Amador Valley Boulevard, between Dougherty Road and Wildwood Road. d. Roadside landscaping, fence, and pathway improvements on the west side of Wildwood Road. e. Roadside landscaping, fence, wall, and pathway improvements on the west side of Dougherty Road and the south side of Amador Valley Boulevard, adjacent to Lot 150. f. Roadside landscaping, fence, and pathway improvements on the west and north sides of Fall Creek Road. g. Roadside landscaping and emergency access surfacing at the north end of Crossridge Road within the street right -of -way. Pursuant to the 1972 Act: "Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or any part of any improvement. "Service" or "servicing" means the furnishing of electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. Drawings showing the specific locations of the improvements are on file in the City's Engineering Department and are made a part of this report by reference. Harris & Associates,. 4 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 3 BUDGET June 7, 2016 All landscaping and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed budget for District is shown on the following page. This includes an estimate of the costs of utilities, operations, services, administration and maintenance associated with the improvements, including all labor, personnel, equipment, materials and administrative expenses. The summary also shows the estimated fund balance, and the projected contribution/ (transfer) based upon the estimated expenditures and assessment revenue. In FY 2016 -17, proposed improvements include the replacement of broken panels of wrought iron fencing along Willow Creek and Wildwood Road. New or replacement planting may occur depending upon drought restrictions. Projected budgets are also shown for the next 2 fiscal years. For fiscal year 2017 -18 and 2018 -19, the budget assumes a 15% increase for water, and a 4% increase for electricity rates. The following describes the services and costs shown in the budget. DIRECT COSTS: Maintenance Tree — The cost of installation and maintenance of trees and plantings along the roadside frontages and pathways within the District Maintenance Landscape — The cost of maintenance and repair of the landscaping and open space areas within the District. Utilities Water — The cost of furnishing water for maintenance of landscape and irrigation systems within the District. Utilities Electricity — The cost of electricity for maintenance of landscape and powering of irrigation systems within the District. Miscellaneous Expenses — Costs that cannot easily be categorized into any of the other Direct Costs defined above. ADMINISTRATIVE COSTS: District Administration, Consulting — The costs of contracting with professionals to provide services specific to the levy administration, including preparation of the Engineer's Report, resolutions, and levy submittal to the County. These fees can also include any additional administrative, legal, or engineering services specific to the District such as the cost to prepare and mail notices of the public meeting and hearing. County per Parcel Fee — The cost to the District for the County to collect assessments on the property tax bills. Alameda County charges 1.7% of the total amount levied. Harris & Associates,. 5 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 ADMINISTRATION COSTS District Administration $ 3,420 $ 3,420 $ 2,772 $ 2,911 $ 2,998 Public Works Administration $ 963 $ - $ - $ - $ - County per Parcel Fee $ 2,248 $ 2,389 $ 2,454 $ 2,527 $ 2,603 TOTAL ADMINISTRATION $ 6,631 $ 5,809 $ 5,226 $ 5,438 $ 5,601 COLLECTIONS /(CREDITS) APPLIED TO LEVY TOTAL DIRECT AND ADMIN COSTS $ 137,931 $ 107,189 $ 141,339 $ 146,281 $ 157,956 Applied Levy $ 132,234 $ 140,542 $ 144,329 $ 148,659 $ 153,119 Reserve Collection /(Transfer) $ (6,222) $ 3,937 $ 2,466 $ 1,853 $ (5,362) Capital Improvement Fund Collection /(Transfer) General Fund Loan Repayment /(Advance) Delinquency Contingency City of Dublin 525 525 525 525 Landscape and Lighting District 1986 -1 525 Other Revenues /(General Fund Contributions) 1,021 1,021 Adjusted Estimated Proposed Forecast TOTAL ADJUSTMENTS Forecast (5,697) Budget Expenses 4,462 Budget 2,991 Budget 2,378 Budget (4,837) FY 2015 -16 FY 2015 -16 FY 2016 -17 FY 2017 -18 FY 2018 -19 DIRECT COSTS $ 144,329 $ 148,659 $ 153,119 Total Revenue at Maximum Rate Maintenance -Tree $ 28,400 $ 28,400 $ 28,800 $ 30,500 $ 31,415 Maintenance - Landscape $ 46,140 $ 46,140 $ 47,563 $ 47,563 $ 48,990 Utilities - Water $ 54,920 $ 25,000 $ 57,700 $ 60,600 $ 69,690 Utilities - Electricity $ 1,690 $ 1,690 $ 1,870 $ 2,000 $ 2,080 Miscellaneous Expenses $ 150 $ 150 $ 180 $ 180 $ 180 148,659 TOTAL DIRECT $ 131,300 $ 101,380 $ 136,113 $ 140,843 $ 152,355 ADMINISTRATION COSTS District Administration $ 3,420 $ 3,420 $ 2,772 $ 2,911 $ 2,998 Public Works Administration $ 963 $ - $ - $ - $ - County per Parcel Fee $ 2,248 $ 2,389 $ 2,454 $ 2,527 $ 2,603 TOTAL ADMINISTRATION $ 6,631 $ 5,809 $ 5,226 $ 5,438 $ 5,601 COLLECTIONS /(CREDITS) APPLIED TO LEVY TOTAL DIRECT AND ADMIN COSTS $ 137,931 $ 107,189 $ 141,339 $ 146,281 $ 157,956 Applied Levy $ 132,234 $ 140,542 $ 144,329 $ 148,659 $ 153,119 Reserve Collection /(Transfer) $ (6,222) $ 3,937 $ 2,466 $ 1,853 $ (5,362) Capital Improvement Fund Collection /(Transfer) General Fund Loan Repayment /(Advance) Delinquency Contingency 525 525 525 525 525 Other Revenues /(General Fund Contributions) 1,021 1,021 1,021 1,021 1,021 TOTAL ADJUSTMENTS $ (5,697) $ 4,462 $ 2,991 $ 2,378 $ (4,837) Balance to Levy (Budgeted) $ 132,234 $ 111,651 $ 144,329 $ 148,659 $ 153,119 Total Revenue at Maximum Rate $ 138,074 $ 140,542 $ 144,329 $ 148,659 $ 153,119 Variance above /(below) Maximum Revenue $ (5,841) $ (28,890) $ - $ - $ - Actual Collection Variance $ - $ 28,890 $ - $ - $ - Applied Charge $ 132,234 $ 140,542 $ 144,329 $ 148,659 $ 153,119 DISTRICTS STATISTICS Total Parcels 1,021 1,021 1,021 1,021 1,021 Total Parcels Levied 948 948 948 948 948 Total Equivalent Benefit Units 651.5 651.5 651.5 651.5 651.5 Proposed Levy per EDU $ 202.97 $ 215.72 $ 221.53 $ 228.18 $ 235.03 Max Levy per EDU $ 215.72 $ 215.72 $ 221.53 $ 228.18 $ 235.03 Applied Levy $ 202.97 $ 215.72 $ 221.53 $ 228.18 $ 235.03 Fund Balance Information Est. Beginning Reserve Fund Balance $ 68,676 $150,792 $ 158,210 $ 164,269 $ 169,806 Reserve Fund Adjustments $ (7,995) $ 3,937 $ 2,466 $ 1,853 $ (5,362) Prior /Penalities /Public Damage $ 1,220 $ 1,220 $ 1,220 $ 1,220 $ 1,220 Interest $ 1,030 $ 2,262 $ 2,373 $ 2,464 $ 2,547 Projected Reserve Balance at End of Year $ 62,931 $ 158,210 $ 164,269 $ 169,806 $ 168,211 Harris & Associates,. 0 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 LEVY BREAKDOWN: June 7, 2016 Reserve Collection /(Transfer) — The 1972 Act pursuant to Chapter 1, Article 4 Section 22569 (a), provides for a District Reserve Fund for operations. Negative amounts shown for this budget item represent transfers from the Reserve Fund that reduces the Balance to Levy. Maintaining a fully funded Operating Reserve eliminates the need for the City to transfer funds from non - District accounts to pay for operational expenses during the first half of the Fiscal Year and also provides the District with sufficient funds to address any unforeseen or unusual expenditures that may occur during the year. Capital Improvement Fund Collection /(Transfer) — The 1972 Act pursuant to Chapter 5, beginning with Section 22660, provides for the District to establish by resolution an assessment installment plan for proposed improvements and expenditures that are greater than can be conveniently raised from a single annual assessment. Depending on the nature of the planned improvements, the collection of funds necessary to complete the project may be collected over a period up to thirty years, but typically not more than five years. The funds collected shall be accumulated in a separate improvement fund commonly referred to as a Capital Improvement Fund (CIF) and are not considered part of the regular maintenance of the improvements or the Reserve Fund. Because the money accumulated in the Capital Improvement Fund is for a specific planned project (budgeted separately), the amount shown for this item in the annual budget will typically be a positive number representing the amount being collected that year as part of the Balance to Levy. A negative number (Transfer) should only occur after the project has been completed and excess funds are being credited back to the District's regular accounts. The actual fund balances and expenditures for Capital Improvements are clearly identified under the Fund Balance Information section of the Budget. General Fund Loans Repayment /(Advances) — This item represents repayments of amounts that had been temporarily advanced to the District from other revenue sources (usually the General Fund) or represents funds being loaned to the District for the current Fiscal Year that must be repaid by future assessments. Similar to the Reserve Collection /(Transfer) line item, this item directly impacts the Reserve Fund Balances either positively or negatively. Repayments are shown as a positive number and represent additional monies being collected in the current annual assessment to repay a prior loan. These loans are typically for capital improvement expenditures or unforeseen expenditures incurred in prior years and Reserve Fund monies were not sufficient to cover the expenses. To ensure the ongoing operation and maintenance of the improvements, the City may advance funds to the District as a temporary loan to meet current expenditures, and collect repayment of the loan through the annual assessments the following year or possibly over several years. Generally, all available Reserve Funds are exhausted before a temporary loan is advanced to the District and the Beginning Reserve Fund Balance will be a negative number indicating the loan amount still outstanding. A loan for the current Fiscal Year (Advance) is shown as a negative number. If the District is expected to incur significant expenditures in the current Fiscal Year for special services or capital improvements (upgrades or refurbishing of the improvements) and the proposed assessment revenues (annual assessments) and /or available Reserve Funds are not sufficient to cover the expenditures, the City may advance funds to the District as a temporary loan to meet the Harris & Associates,. 7 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 proposed expenditures. Generally, all available Reserve Funds must be exhausted before a temporary loan is advanced to the District and any funds temporarily loaned in excess of the available Reserve Funds will be reflected as a negative Ending Reserve Fund Balance. This negative Reserve Fund Balance will be repaid and replenished through future assessment revenues. Delinquency Contingency — This is the estimated amount designated for delinquent property tax payments that the County is unable to collect in a given year. Other Revenue /General Fund (Contributions) — This item includes additional funds designated for the District that are not annual assessments. These funds are added to the District account to reduce assessments, and may be from non - District or District sources including City General Fund Contributions and /or interest earnings. Any funds indicated on this line will be shown as a negative number indicating a reduction in the amount to be levied and represent funds that do not have to be repaid. Balance to Levy — This is the total amount to be collected for the current fiscal year through the annual assessments (for special benefits). The Balance to Levy represents the sum of Total Direct and Administration Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Source, and the Contribution Replenishment. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll. Total Parcels Levied — The total number of parcels within the District that will receive the special benefits during the current fiscal year. Total EDUs — The total Equivalent Dwelling Units within the District applied to the parcels described above. Levy per EDU — This amount represents the rate being applied to each parcel's individual EDU factor. The Levy per EDU is the result of dividing the "Special Assessment to Levy" by the Total EDUs of the District for the fiscal year. Maximum Levy per EDU — This is the rate per EDU approved by property owners within the District, in accordance with Proposition 218, adjusted for inflation as described in the Method of Apportionment. 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE It is recognized that the cost of maintaining the District improvements increases slightly every year as a result of inflation. In Fiscal Year 2001 -02, the property owners approved a formula for increasing assessments for each future fiscal year to offset increases in costs due to inflation. The maximum assessment amount allowed for each fiscal year shall be increased in an amount equal to the annual percentage increase of the local San Francisco - Oakland -San Jose Area Consumer Price Index ( "Index ") for "All Urban Wage Earners and Clerical Workers ", plus any actual increase in the cost of utilities (water and electricity). Each fiscal year the City shall identify the annual percentage difference in the Index between April of the current fiscal year and that of the previous April. Should the Bureau of Harris & Associates,. 0 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. The table below shows the calculations for the adjustment to the Maximum Allowable Assessment for Fiscal Year 2016 -17. Item Forecast Budget FY 2016 -17 Forecast Budget FY 2017 -18 Forecast Budget FY 2017 -18 CPI April Prior Year 257.622 N/A N/A CPI April Current Year 264.565 N/A N/A Increase /(Decrease) 2.695% 3.000% 3.000% Prior Year Maximum Levy per EDU $ 215.72 $ 221.53 $ 228.18 Current Year Maximum Levy per EDU- CPI only $ 221.53 $ 228.18 $ 235.03 Combined Utility Costs Current Year $ 59,570 $ 62,600 $ 71,770 Combined Utility Costs Prior Year $ 26,690 $ 59,570 $ 62,600 Change in Combined Utility Costs 123.19% 5.09% 14.65% Change in Combined Utilities $ 32,880 $ 3,030 $ 9,170 Amount per EDU for Utilities $ 50.47 $ 4.65 $ 14.08 Maximum Levy per EDU current year $ 221.53 $ 228.18 $ 235.03 In the event that the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the assessment without applying the adjustment formula to the amount levied. If the budget and assessments for a district require an increase greater than the adjustment set forth in the formula, then the proposed increase would be subject to approval by the District property owners. Each fiscal year, the maximum assessment rate shall increase at the maximum amount allowable regardless of whether the increase is levied to the parcels within the District. Harris & Associates,. 0 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 4 METHOD OF APPORTIONMENT June 7, 2016 4.1 GENERAL The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. In addition, pursuant to Article XIIID Section 4: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable and an agency shall separate the general benefits from the special benefits conferred on a parcel." 4.2 BENEFITANALYSIS Each of the improvements have been carefully reviewed by the City and the corresponding assessments have been proportionately spread to each parcel based on special benefits received from the improvements as determined at the time the District was established. General Benefits — In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly affect the properties within the District. Although the improvements include public areas, easements, right -of -ways and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Harris & Associates,. 10 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Special Benefits — The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability of those properties enhanced by the presence of well- maintained landscaping in close proximity to those properties. The special benefits associated with landscape improvements are specifically: 1) Enhanced desirability of properties through association with the improvements. 2) Improved aesthetic appeal of properties providing a positive representation of the area and properties. 3) Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. 4) Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. 5) Increased sense of pride in ownership of property within the District resulting from well - maintained improvements associated with the properties. 6) Enhanced quality of life through well- maintained green space and landscaped areas. 7) Reduced criminal activity and property - related crimes (especially vandalism) against properties in the District through well- maintained surroundings and amenities including abatement of graffiti. 8) Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The preceding special benefits contribute to the aesthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. on- ssessa to Properties — Within the boundaries of the District, there are several types of properties that are considered to receive no special benefit from the District improvements and are therefore not assessed. These parcels include: 1) Publicly owned parcels that are reserved as Public Open Space or are developed as City Parks for active recreation and are maintained and serviced by the District; 2) Publicly owned wetland parcels; 3) Certain Public Utility parcels; 4) Privately owned open space parcels; and 5) Privately owned "sliver" parcels that have resulted from a lot line adjustment with an adjacent larger parcel. Harris & Associates,. 11 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 4.3 ASSESSMENT METHODOLOGY June 7, 2016 The special benefits received by each parcel within the District and each parcel's proportional annual assessment are calculated on the basis of a formula known as Equivalent Dwelling Units. The Equivalent Dwelling Unit (EDU) method of apportionment establishes a proportional benefit relationship between the various parcels within the District and the improvements maintained by the District. The typical single family residential parcel is assigned 1.0 Equivalent Dwelling Unit (EDU). EDU's are assigned to the other land uses based upon the property's development status, type of development (County of Alameda land use code) and property size as shown in the table below. Property Type EDU Factor Basis Single - Family Residential (SFR) 1.00 Parcel Multi - Family Residential (MFR) 0.50 Unit Commercial 4.00 Parcel Exempt, Common Open Space, Public Land 0.00 Parcel Single - Family Residential (SFR) — (County land use 1x) This land use identifies properties that are developed for single - family residential use and are assigned a factor of 1.00 EDU per parcel. This is the base value that all other land use types are compared and weighted against (i.e. Equivalent Dwelling Unit EDU). Multi - Family Residential — This land use identifies properties that are developed for multi - family use and are assigned a factor of 0.50 EDU per unit. Commercial — This land use identifies properties that are classified for commercial use and are assigned a factor of 4.00 EDU per parcel /lot. Common Open Space, Cemeteries & Other Exempt Property — This land use identifies properties that are exempt from assessment and are assigned 0.00 EDU. The following formulas are used to calculate each property's assessment: Total Balance to Levy/ Total EDUs = Levy per EDU (Rate) Parcel EDU x Levy per EDU = Parcel LevyAmount Harris & Associates,. 12 Engineer's Report Landscaping and Lighting District No. 1986 -1 City of Dublin Fiscal Year 2016 -17 5 ASSESSMENT ROLL June 7, 2016 The proposed assessment and the amount of the assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are shown in Appendix B. The description of each lot or parcel is part of the records of the Assessor of the County of Alameda and those records are, by reference, made part of this report. The assessments shown will be submitted to the County Auditor /Controller, and included on the property tax roll for each parcel shown in the assessment roll for Fiscal Year 2016 -17. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of the parcels as shown on the Alameda County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Alameda County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Harris & Associates,. 13 RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING PRELIMINARY ENGINEER'S REPORT, CONFIRMING DIAGRAM AND ASSESSMENT LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1986 -1 (VILLAGES AT WILLOW CREEK) WHEREAS, by its Resolution No. 26 -16, a Resolution Directing Preparation of Annual Report for City of Dublin Landscaping and Lighting Maintenance Assessment District No. 1986- 1 (the "District "), this Council designated the City Engineer as Engineer of Work and ordered said Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 26 -16 and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and finds that each and every part of said report is sufficient; and that said report neither requires nor should be modified in any respect; NOW, THEREFORE, BE IT RESOLVED a) That the Engineer's estimate of the itemized and total costs and expenses of maintaining said improvements and of the incidental expenses in connection therewith, as contained in said report be, and each of them are hereby preliminarily approved and confirmed; b) That the diagram showing the assessment district, description of the improvements to be maintained, and the boundaries and dimensions of the respective lots and parcels of land within said District, as contained in said report be, and it is hereby preliminarily approved and confirmed; c) That the assessment of the total amount of the cost and expenses of the proposed maintenance of said improvements upon the several lots and parcels of land in said District in proportion to the estimated benefits to be received by such lots and parcels, respectively, from said maintenance, and of the expenses incidental thereto, as contained in said report be, and they are hereby preliminarily approved and confirmed. PASSED, APPROVED AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPOINTING TIME AND PLACE OF HEARING PROTESTS IN RELATION TO PROPOSED ASSESSMENTS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1986 -1 WHEREAS, by its Resolution No. 26 -16, a resolution directing preparation of annual report for City of Dublin Landscaping and Lighting Maintenance Assessment District 1986 -1 (the "District "), this Council designated the City Engineer as Engineer of Work and ordered that Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 26 -16, and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and each and every part thereof, and finds that each and every part of said report is sufficient; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE ACT, AS FOLLOWS: Section 1 Intention: The City Council hereby declares that it is its intention to seek the Annual Levy of the Districts pursuant to the Act, over and including the land within the District boundaries, and to levy and collect assessments on all such land to pay the annual costs of the improvements. The City Council finds that the public's best interest requires such levy and collection. Section 2 District Boundaries: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District, within the boundaries of the City of Dublin, within the County of Alameda, State of California. Section 3 Description of Improvements: The improvements within the District may include operation, maintenance, acquisition and servicing of landscaping and appurtenant facilities within the boundaries of the District. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a satisfactory operating condition. Section 4 Proposed Assessment Amounts: For Fiscal Year 2016 -2017, the proposed assessments are outlined in the Engineer's Report which details any changes or increases in the annual assessment. Section 5 Public Hearing(s): The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act. Section 6 Notice: The City Clerk is hereby directed to give notice of said hearing to all property owners in the District by causing the publishing of this Resolution once a week in a local newspaper published and circulated in the City, for two consecutive weeks not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this Resolution in official posting locations customarily used by the City Council for the posting of notices. Any interested person may file a written protest with the City Clerk prior to the conclusion of the Public Hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 21, 2016, at 7:00 p.m. or as soon thereafter as feasible in the City Council Chambers, located at 100 Civic Plaza, Dublin. Section 8 The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. PASSED, APPROVED, AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor II MEN MEN uuuu IIIVo IIIVo Iluo Landscape and Lighting District No. 1997 -1 Fiscal Year 2016 -17 Forthe CITY OF DUBLIN Alameda County, California June 7, 2016 MHarris & Associates Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 rable of Contents June 7, 2016 1 OVERVIEW ............................................................................................................... ..............................1 1.1 INTRODUCTION ............................................................................................... ..............................1 General Description of the District ......................................................................... ..............................1 Compliance with the California Constitution .......................................................... ..............................1 Summary of Proposed Assessment and Expenditures .......................................... ............................... 2 2 IMPROVEMENTS .................................................................................................... ............................... 3 3 BUDGET ................................................................................................................... ..............................5 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE ................................................ ..............................8 4 METHOD OF APPORTIONMENT ............................................................................. .............................10 4.1 GENERAL ........................................................................................................ .............................10 4.2 BENEFIT ANALYSIS .......................................................................................... .............................10 GeneralBenefits ..................................................................................................... .............................10 SpecialBenefits ...................................................................................................... .............................11 Non - Assessable Properties .................................................................................... .............................11 4.3 ASSESSMENT METHODOLOGY ....................................................................... .............................12 4.4 Rate Classifications ........................................................................................ .............................12 5 ASSESSMENT ROLL ................................................................................................. .............................13 Appendix A - Boundary Map Harris & Associates,. Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT June 7, 2016 The undersigned respectfully submits the enclosed report as directed by the City Council. The undersigned certifies that he is a Professional Engineer, registered in the State of California. DATED: June 7, 2016 ya �� rn � m Y N0. 50255 ;a s� �� BY: K. Dennis � gelho e OF F' C g qT o Assessment Engineer F AG�� R.C.E. No. 50255 Harris & Associates,. Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 1 OVERVIEW 1.1 INTRODUCTION June 7, 2016 The City of Dublin ( "City ") levies and collects special assessments on parcels within the City of Dublin Landscape Maintenance Assessment District No. 1997 -1 ( "District ") in order to maintain the landscaping and irrigation improvements within the Santa Rita area. The assessments and methods of apportionment described in this Report utilize commonly accepted assessment engineering practices and have been calculated and proportionately spread to each parcel based on the special benefits received as approved by the City Council at the time the District was formed. The District was formed to fund street landscape maintenance and utility costs for the Santa Rita development area, also known as Emerald Park. The total District area is approximately 421.87 developed acres bounded by Arnold Road on the west, Gleason Drive on the north, Tassajara Road on the east, and Interstate 580 on the south. A diagram of the District is included in Appendix A of this report. Assessments are levied annually within the District pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ( "1972 Act "). All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and are in compliance with the provisions of the California Constitution Article XIIID ( "Article XIIID "), which was enacted with the passage of Proposition 218 in November 1996. In accordance with the requirements of Prop 218 the property owners approved a formula for increasing assessments in succeeding years that allows the maintenance cost to increase according to the Consumer Price Index and the utility cost to increase according to the actual cost of utilities. Any future increase in the assessment rate in excess of the maximum allowable rate or substantial changes in the services provided would require the approval of the property owners subject to the assessment based upon a mailed ballot which would be sent to each property owner pursuant to the provisions of the California Constitution Article XIIID. Harris & Associates,. 1 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 A summary of the assessments to be levied for each property type are shown in the table below Property Type Rate Basis California Creekside Single - Family Residential (SFR) $128.52 Lot California Brookside Multi - Family Residential (MFR) $55.69 Unit Summer Glen — Richmond American (North) Lots $112.54 Lot Summer Glen — Richmond American (South) Lots $123.85 Lot Summer Glen — Kaufman & Broad Lots $172.36 Lot Summer Glen — Pulte Lots $216.24 Lot Dublin Greene Tract 7084 Single - Family Residential $136.13 Lot Dublin Greene Tract 7149 Multi - Family Residential $102.50 Lot Dublin Greene Tract 7149 Condominiums /Apartments $53.43 Unit Retail, Office, and Industrial $903.85 Acre Harris & Associates,. 2 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 2 IMPROVEMENTS June 7, 2016 The District provides for the continued maintenance and servicing of the landscaping and open space areas within the following areas: 1. Portions of the northerly and southerly street frontages for Dublin Boulevard, from Arnold Road to Tassajara Road. 2. The northerly and southerly street frontages for Central Parkway from Hacienda Drive to Tassajara Road, excluding the elementary school and Emerald Glen Park frontage landscaping. 3. The southerly street frontage for Gleason Drive, from Arnold Road to Tassajara Creek 4. The easterly street frontage for Arnold Road, from Central Parkway to Gleason Drive. 5. The easterly street frontage for Hacienda Drive, from Summer Glen Drive to Gleason Drive and westerly street frontage for Hacienda Drive, from Central Parkway to Gleason Drive. 6. Tassajara Creek and trail, from 1 -580 to the northerly property boundary of the Alameda County Surplus Property Authority property (APN 986 -1- 1,10). 7. Street median landscaping is not part of this District. As generally defined in the 1972 Act, maintenance and servicing of the improvements may include one or any combination of the following: 1) The installation or planting of landscaping. The installation or construction of statuary, fountains, and other ornamental structures and facilities. 2) 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, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. 3) The maintenance or servicing, or both, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including, but not limited to: a. Repair, removal, or replacement of all or any part of any improvements; b. Grading, clearing, removal of debris, the installation, repair or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c. Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; d. The removal of trimmings, rubbish, debris, and other solid waste; e. The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. f. Electric current or energy, gas, or other agent for the lighting or operation of any other improvements. g. Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. 4) Incidental expenses associated with the improvements including, but not limited to: a. The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b. The costs of printing, advertising, and the publishing, posting and mailing of notices; Harris & Associates,. 3 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 c. Compensation payable to the County for collection of assessments; d. Compensation of any engineer or attorney employed to render services; e. Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; and, f. Costs associated with any elections held for the approval of a new or increased assessment. Pursuant to the 1972 Act: "Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or any part of any improvement. "Service" or "servicing" means the furnishing of electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. Drawings showing the specific locations of the improvements are or file in the City's Engineering Department are area made a part of this report by reference. Harris & Associates,. 4 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 3 BUDGET June 7, 2016 All landscaping and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed budget for the District is shown on the following page. This includes an estimate of the costs of utilities, operations, services, administration and maintenance associated with the improvements, including all labor, personnel, equipment, materials and administrative expenses. The summary also shows the estimated fund balance, and the projected contribution/ (transfer) based upon the estimated expenditures and assessment revenue. In FY 2016 -17, plant replacement will take place at various locations along Arnold Road, Hacienda Drive, Central Boulevard, and Dublin Boulevard including mulch as needed. Assessment District 1997 -1 is currently irrigation with reclaimed water. Projected budgets are also shown for the next 2 fiscal years. For fiscal year 2017 -18 and 2018 -19, the budget assumes a 15% increase for water, and a 4% increase for electricity rates. The following describes the services and costs shown in the budget. DIRECT COSTS: Maintenance Tree — The cost of installation and maintenance of trees and plantings along the street frontages within the District. Maintenance Landscape —The cost of maintenance and repair of landscaping and open space areas. Utilities Water —The cost of furnishing water for maintenance of landscape and irrigation systems. Utilities Electricity — The cost of electricity for maintenance of landscape, powering of irrigation systems, and entry lighting within the District. Miscellaneous Expenses — Costs that cannot easily be categorized into any of the other Direct Costs defined above. ADMINISTRATIVE COSTS: District Administration, Consulting — The costs of contracting with professionals to provide services specific to the levy administration, including preparation of the Engineer's Report, resolutions, and levy submittal to the County. These fees can also include any additional administrative, legal, or engineering services specific to the District such as the cost to prepare and mail notices of the public meeting and hearing. Public Works Administration — The cost of services provided to administer the District from the Public Works department of the City of Dublin. County per Parcel Fee — The cost to the District for the County to collect assessments on the property tax bills. Alameda County charges 1.7% of the total amount levied. Harris & Associates,. 5 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 City of Dublin $ Landscape Maintenance Assessment District 1997 -1 2,772 $ Adjusted Estimated Proposed Forecast Forecast Budget Expenses Budget Budget Budget FY 2015 -16 FY 2015 -16 FY 2016 -17 FY 2017 -18 FY 2018 -19 DIRECT COSTS $ 3,420 $ 2,772 $ 2,911 Maintenance - Tree(General) $ 17,725 $ 17,725 $ 17,965 $ 17,965 $ 18,504 Maintenance - Landscape (MCE Base Services) $ 206,726 $ 206,726 $ 211,000 $ 211,000 $ 221,550 Utilities - Water $ 98,870 $ 60,000 $ 91,350 $ 96,000 $ 110,400 Utilities - Electricity $ 460 $ 460 $ 510 $ 540 $ 562 Miscellaneous Expenses $ 210 $ 210 $ 250 $ 250 $ 250 TOTAL DIRECT $ 323,991 $ 285,121 $ 321,075 $ 325,755 $ 351,266 ADMINISTRATION COSTS District Administration Public Works Administration County per Parcel Fee TOTAL ADMINISTRATION APPLIED TO LEVY TOTAL DIRECT AND ADMIN COSTS Reserve Collection /(Transfer) Capital Improvement Fund Collection /(Transfer) General Fund Loan Repayment /(Advance) Delinquency Contingency Other Revenues /(General Fund Contributions) TOTAL ADJUSTMENTS Balance to Levy (Budgeted) Total Revenue at Maximum Rate Variance above /(below) Maximum Revenue Actual Collection Variance Applied Charge $ 3,420 $ 3,420 $ 2,772 $ 2,911 $ 5,574 $ 6,404 $ 6,404 $ 6,404 $ 8,994 $ 9,824 $ 9,176 $ 9,315 $ 332,985 $ 294,945 $ 330,251 $ 335,070 $ 360,726 $ 39,749 $ 39,749 $ - $ - $ - $ - $ - $ 50,000 $ 50,000 $ 50,000 $ 4,979 $ 4,424 $ 4,954 $ 5,026 $ 5,411 $ 44,728 $ 44,174 $ 54,954 $ 55,026 $ 55,411 $ 377,713 $ 339,119 $ 385,204 $ 390,096 $ 416,137 $ 482,463 $ 511,991 $ 525,790 $ 541,562 $ 557,810 $ (154,569) $ (172,872) $ (140,585) $ (151,466) $ (141,674) $ (49,819) $ 37,571 $ (8,515) $ (13,407) $ (39,447) $ 327,894 $ 376,690 $ 376,690 $ 376,689 $ 376,690 DISTRICTS STATISTICS Total Parcels 991 991 991 991 991 Total Parcels Levied 976 976 976 976 976 Total Developed Acreage 416.76 416.76 416.76 416.76 416.76 Proposed Levy per Acre $ 786.77 $ 903.85 $ 903.85 $ 903.85 $ 903.85 Maximum Levy per Acre $ 1,228.50 $ 1,228.50 $ 1,261.61 $ 1,299.46 $ 1,338.44 Fund Balance Information Est. Beginning Reserve Fund Balance $ 221,947 $ 299,960 $ 345,918 $ 304,566 $ 262,181 Reserve Fund Adjustments $ 39,749 $ 39,749 $ - $ - $ - Transfer From /(To) CIF Reserve Fund $ (50,000) $ (50,000) $ (50,000) $ (50,000) Prior /Penalities /Public Damage $ 1,710 $ 1,710 $ 3,459 $ 3,046 $ 3,046 Interest $ 3,329 $ 4,499 $ 5,189 $ 4,568 $ 3,933 Projected Reserve Balance at End of Year $ 216,735 $ 345,918 $ 304,566 $ 262,181 $ 219,159 Capital Improvement Fund Balance Information Beginning CIF Balance $ - $ - $ - $ 50,000 $ 100,000 CIF Adjustments $ $ $ - $ - $ - Transfer From /(To) CIF Reserve Fund $ $ $ 50,000 $ 50,000 $ 50,000 Projected CIF Year End Fund Balance $ $ $ 50,000 $ 100,000 $ 150,000 Harris & Associates,. 0 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 LEVY BREAKDOWN: June 7, 2016 Reserve Collection /(Transfer) — The 1972 Act pursuant to Chapter 1, Article 4 Section 22569 (a), provides for a District Reserve Fund for operations. Negative amounts shown for this budget item represent transfers from the Reserve Fund that reduces the Balance to Levy. Maintaining a fully funded Operating Reserve eliminates the need for the City to transfer funds from non - District accounts to pay for operational expenses during the first half of the fiscal year and also provides the District with sufficient funds to address any unforeseen or unusual expenditures that may occur during the year. Capital Improvement Fund Collection /(Transfer) — The 1972 Act pursuant to Chapter 5, beginning with Section 22660, provides for the District to establish by resolution an assessment installment plan for proposed improvements and expenditures that are greater than can be conveniently raised from a single annual assessment. Depending on the nature of the planned improvements, the collection of funds necessary to complete the project may be collected over a period up to thirty years, but typically not more than five years. The funds collected shall be accumulated in a separate improvement fund commonly referred to as a Capital Improvement Fund (CIF) and are not considered part of the regular maintenance of the improvements or the Reserve Fund. Because the money accumulated in the Capital Improvement Fund is for a specific planned project (budgeted separately), the amount shown for this item in the annual budget will typically be a positive number representing the amount being collected that year as part of the Balance to Levy. A negative number (Transfer) should only occur after the project has been completed and excess funds are being credited back to the District's regular accounts. The actual fund balances and expenditures for Capital Improvements are clearly identified under the Fund Balance Information section of the Budget. General Fund Loans Repayment /(Advances) — This item represents repayments of amounts that had been temporarily advanced to the District from other revenue sources (usually the General Fund) or represents funds being loaned to the District for the current Fiscal Year that must be repaid by future assessments. Similar to the Reserve Collection /(Transfer) line item, this item directly impacts the Reserve Fund Balances either positively or negatively. Repayments are shown as a positive number and represent additional monies being collected in the current annual assessment to repay a prior loan. These loans are typically for capital improvement expenditures or unforeseen expenditures incurred in prior years and Reserve Fund monies were not sufficient to cover the expenses. To ensure the ongoing operation and maintenance of the improvements, the City may advance funds to the District as a temporary loan to meet current expenditures, and collect repayment of the loan through the annual assessments the following year or possibly over several years. Generally, all available Reserve Funds are exhausted before a temporary loan is advanced to the District and the Beginning Reserve Fund Balance will be a negative number indicating the loan amount still outstanding. A loan for the current fiscal year (Advance) is shown as a negative number. If the District is expected to incur significant expenditures in the current fiscal year for special services or capital improvements (upgrades or refurbishing of the improvements) and the proposed assessment revenues (annual assessments) and /or available Reserve Funds are not sufficient to cover the expenditures, the City may advance funds to the District as a temporary loan to meet the Harris & Associates,. 7 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 proposed expenditures. Generally, all available Reserve Funds must be exhausted before a temporary loan is advanced to the District and any funds temporarily loaned in excess of the available Reserve Funds will be reflected as a negative Ending Reserve Fund Balance. This negative Reserve Fund Balance will be repaid and replenished through future assessment revenues. Delinquency Contingency — This is the estimated amount designated for delinquent property tax payments that the County is unable to collect in a given year. Other Revenue /General Fund (Contributions) — This item includes additional funds designated for the District that are not annual assessments. These funds are added to the District account to reduce assessments, and may be from non - District or District sources including City General Fund Contributions and /or interest earnings. Any funds indicated on this line will be shown as a negative number indicating a reduction in the amount to be levied and represent funds that do not have to be repaid. Balance to Levy — This is the total amount to be collected for the current Fiscal Year through the annual assessments (for special benefits). The Balance to Levy represents the sum of Total Direct and Administration Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Source, and the Contribution Replenishment. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll. Total Parcels —The total number of parcels within the District including exempt parcels. Total Parcels Levied — The total number of parcels within the District that will receive the special benefits during the current fiscal year. Total Developed Acreage — The total acreage within the District that will receive the special benefits during the current fiscal year. Proposed Levy per Acre — The proposed assessment per acre within the District for the current fiscal year. Maximum Levy per Acre — This is the maximum rate per acre allowable within the District for the current fiscal year. Inflationary Factor — Annual percentage increase in the San Francisco - Oakland -San Jose Area Consumer Price Index for "All Urban Wage Earners and Clerical Workers," applies to all cost except water and electricity, plus any additional increase in the utility cost of water and electricity. Each fiscal year the City shall identify the change in the Index for April to April of the preceding year. 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE It is recognized that the cost of maintaining the District improvements increases slightly every year as a result of inflation. As at the time the District was formed, the property owners approved a formula for increasing assessments for each future fiscal year to offset increases in costs due to inflation. Harris & Associates,. 0 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 The maximum assessment amount allowed for each fiscal year shall be increased in an amount equal to the annual percentage increase of the local San Francisco - Oakland -San Jose Area Consumer Price Index ( "Index ") for "All Urban Wage Earners and Clerical Workers" applies to all costs except water and electricity, plus any actual increase in the cost of electricity. Each fiscal year the City shall identify the annual percentage difference in the Index between April of the current fiscal year and that of the previous April. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. Item Forecast Budget FY 2016 -17 Forecast Budget FY 2017 -18 Forecast Budget FY 2018 -19 CPI April Prior Year 257.622 N/A N/A CPI April Current Year 264.565 N/A N/A % Increase /(Decrease) 2.695% 3.000% 3.000% Prior Year Maximum Levy per EDU excluding utilities $ 907.45 $ 931.91 $ 959.87 Current Year Maximum Levy per EDU- CPI only $ 931.91 $ 959.87 $ 988.66 Combined Utility Costs Current Year $ 91,860 $ 96,540 $ 110,962 Combined Utility Costs Prior Year $ 60,460 $ 91,860 $ 96,540 Change in Combined Utilities $ 31,400 $ 4,680 $ 14,422 % Change in Combined Utility Costs 51.94% 5.09% 14.94% Prior Year Levy for Utilities $ 198.31 $ 301.30 $ 316.65 Current Amount per Acre for Utilities $ 301.30 $ 316.65 $ 363.95 Maximum Levy per Acre current year $ 1,261.61 $ 1,299.46 $ 1,338.44 In the event that the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the assessment without applying the adjustment formula to the amount levied. If the budget and assessments for a district require an increase greater than the adjustment set forth in the formula, then the proposed increase would be subject to approval by the District property owners. Each fiscal year, the maximum assessment rate shall increase at the maximum amount allowable regardless of whether the increase is levied to the parcels within the District. Harris & Associates,. 0 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 4 METHOD OF APPORTIONMENT June 7, 2016 4.1 GENERAL The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. In addition, pursuant to Article XIIID Section 4: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable and an agency shall separate the general benefits from the special benefits conferred on a parcel." 4.2 BENEFITANALYSIS Each of the improvements have been carefully reviewed by the City and the corresponding assessments have been proportionately spread to each parcel based on special benefits received from the improvements as determined at the time the District was established. General Benefits — In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly affect the properties within the District. Although the improvements include public areas, easements, right -of -ways and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Harris & Associates,. 10 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Special Benefits — The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability of those properties enhanced by the presence of well- maintained landscaping in close proximity to those properties. The special benefits associated with landscape improvements are specifically: 1) Enhanced desirability of properties through association with the improvements. 2) Improved aesthetic appeal of properties providing a positive representation of the area and properties. 3) Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. 4) Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. 5) Increased sense of pride in ownership of property within the District resulting from well - maintained improvements associated with the properties. 6) Enhanced quality of life through well- maintained green space and landscaped areas. 7) Reduced criminal activity and property - related crimes (especially vandalism) against properties in the District through well- maintained surroundings and amenities including abatement of graffiti. 8) Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The preceding special benefits contribute to the aesthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. on- ssessa to Properties — Within the boundaries of the District, there are several types of properties that are considered to receive no special benefit from the District improvements and are therefore not assessed. These parcels include: 1) Publicly owned parcels that are reserved as Public Open Space or are developed as City Parks for active recreation and are maintained and serviced by the District; 2) Publicly owned wetland parcels; 3) Certain Public Utility parcels; 4) Privately owned open space parcels; and Harris & Associates,. 11 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 5) Privately owned "sliver" parcels that have resulted from a lot line adjustment with an adjacent larger parcel 4.3 ASSESSMENT METHODOLOGY The initial Engineer's Report provides for a maximum assessment of $710 per developed acre, based on a total of 389,400 square feet of street improvements and a total of 957,000 square feet of creek improvements and 440.08 acres of developed property at build -out of all property within the District. The cost of the Improvements will be divided equally among the total number of developed properties within the boundaries of the District on a per acre basis. "Developed acres" shall include property having a recorded final map or parcel map as of July 1st of each year. The following formulas are used to calculate each property's assessment: 1. Cost of maintenance of installed Improvements ( "M "). 2. Total amount of developed acres ( "A "). 3. The annual assessment for the developed acres for that year ( "M ") shall be spread on a per- acre basis ( "M" - "A ") based on the following: a. Commercial developed area, per acre basis. b. Single- family residential area, per acre basis. c. Multi- family residential area, per acre basis. 4. The single - family and multi - family residential area per acre assessment will be further spread on a per lot basis based on the number of lots on the final map, parcel map, or condominium map for each particular development. 5. If the assessment in any year would exceed $710 per acre, the amount in excess of $710 shall be assessed to the remaining undeveloped acres on a per acre basis, subject to the maximum developed acre amount. 6. The maximum developed acre assessment of $710 per year will be increased annually by the percentage increase in the San Francisco - Oakland -San Jose Area Consumer Price Index for "All Urban Consumers and Clerical Workers" (applies to all costs except water and electricity), plus any actual increase in the cost for water and electricity. 7. If the square footage cost of the Improvements will be less than the amount set forth herein (after adjustment in accordance with Paragraph 6), the assessment shall be reduced proportionately to reflect the reduced cost of Improvements in that year. 4.4 Rate Classifications Single and Multi- family residential subdivisions within the District will be assigned a rate on a per lot basis. To determine the assessment per lot, the number of acres within the subdivision will be divided by the number of lots within the subdivision. Harris & Associates,. 12 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Commercial (including retail, office, and industrial uses, as well as apartment properties) are assessed based on the per -acre figure of $903.85 multiplied by the number of acres per individual lot for Fiscal Year 2016 -17. 5 ASSESSMENT ROLL The proposed assessment and the amount of the assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are shown in Appendix B. The description of each lot or parcel is part of the records of the Assessor of the County of Alameda and those records are, by reference, made part of this report. The assessments shown will be submitted to the County Auditor /Controller, and included on the property tax roll for each parcel shown in the assessment roll for fiscal year 2016 -17. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of the parcels as shown on the Alameda County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Alameda County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Harris & Associates,. 13 Engineer's Report Landscape and Lighting District No. 1997 -1 City of Dublin Fiscal Year 2016 -17 APPENDIX A - ASSESSMENT DIAGRAM June 7, 2016 Harris & Associates,. 14 RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING PRELIMINARY ENGINEER'S REPORT, LANDSCAPING MAINTENANCE ASSESSMENT DISTRICT 1997 -1 (SANTA RITA AREA) WHEREAS, by its Resolution No. 27 -16, a Resolution Initiating Proceedings for Landscaping Maintenance Assessment District No. 1997 -1 (Santa Rita Area) (the "District "), this Council designated the City Engineer as Engineer of Work and ordered said Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 27 -16 and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and finds that each and every part of said report is sufficient; and that said report neither requires nor should be modified in any respect; NOW, THEREFORE, BE IT RESOLVED a) That the Engineer's estimate of the itemized and total costs and expenses of maintaining said improvements and of the incidental expenses in connection therewith, as contained in said report be, and each of them are hereby preliminarily approved and confirmed; b) That the diagram showing the assessment district, description of the improvements to be maintained, and the boundaries and dimensions of the respective lots and parcels of land within said District, as contained in said report be, and it is hereby preliminarily approved and confirmed; c) That the assessment of the total amount of the cost and expenses of the proposed maintenance of said improvements upon the several lots and parcels of land in said District in proportion to the estimated benefits to be received by such lots and parcels, respectively, from said maintenance, and of the expenses incidental thereto, as contained in said report be, and they are hereby preliminarily approved and confirmed. PASSED, APPROVED AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPOINTING TIME AND PLACE OF HEARING PROTESTS IN RELATION TO PROPOSED ASSESSMENTS LANDSCAPING MAINTENANCE ASSESSMENT DISTRICT 1997 -1 (SANTA RITA AREA) WHEREAS, by its Resolution No. 27 -16, a resolution directing preparation of annual report for City of Dublin Landscaping Maintenance Assessment District 1997 -1 (the "District "), this Council designated the City Engineer as Engineer of Work and ordered that Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 27 -16, and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and each and every part thereof, and finds that each and every part of said report is sufficient; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE ACT, AS FOLLOWS: Section 1 Intention: The City Council hereby declares that it is its intention to seek the Annual Levy of the Districts pursuant to the Act, over and including the land within the District boundaries, and to levy and collect assessments on all such land to pay the annual costs of the improvements. The City Council finds that the public's best interest requires such levy and collection. Section 2 District Boundaries: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District, within the boundaries of the City of Dublin, within the County of Alameda, State of California. Section 3 Description of Improvements: The improvements within the District may include operation, maintenance, acquisition and servicing of landscaping and appurtenant facilities within the boundaries of the District. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a satisfactory operating condition. Section 4 Proposed Assessment Amounts: For Fiscal Year 2016 -2017, the proposed assessments are outlined in the Engineer's Report which details any changes or increases in the annual assessment. Section 5 Public Hearing(s): The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act. Section 6 Notice: The City Clerk is hereby directed to give notice of said hearing to all property owners in the District by causing the publishing of this Resolution once a week in a local newspaper published and circulated in the City, for two consecutive weeks not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this Resolution in official posting locations customarily used by the City Council for the posting of notices. Any interested person may file a written protest with the City Clerk prior to the conclusion of the Public Hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 21, 2016, at 7:00 p.m. or as soon thereafter as feasible in the City Council Chambers, located at 100 Civic Plaza, Dublin. Section 8 The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. PASSED, APPROVED, AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor II ONE ONE uuuu For Street lighting Maintenance Assessment District No. 1999 -1 (Dublin Ranch and Tracts 7067, 7856, 8024, 8073 & 8074) Fiscal Year 2016 -17 For the City of Dublin Alameda County, California June 7, 2016 Im Harris & Associates Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 Table f Contents June 7, 2016 1 OVERVIEW ............................................................................................................... ..............................1 1.1 INTRODUCTION ............................................................................................... ..............................1 General Description of the District ......................................................................... ..............................1 Compliance with the California Constitution .......................................................... ..............................1 Summary of Proposed Assessment and Expenditures ......................................... ............................... 2 2 IMPROVMENTS ...................................................................................................... ............................... 3 3 BUDGET ................................................................................................................... ..............................5 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE ................................................ ..............................8 4 METHOD OF APPORTIONMENT ............................................................................. .............................10 4.1 GENERAL ........................................................................................................ .............................10 4.2 BENEFIT ANALYSIS .......................................................................................... .............................10 GeneralBenefits ..................................................................................................... .............................10 SpecialBenefits ...................................................................................................... .............................10 Non - Assessable Properties .................................................................................... .............................11 4.3 ASSESSMENT METHODOLOGY ....................................................................... .............................11 5 ASSESSMENT ROLL ................................................................................................. .............................13 Appendix A - Boundary Map Harris & Associates,. Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT June 7, 2016 The undersigned respectfully submits the enclosed report as directed by the City Council. The undersigned certifies that he is a Professional Engineer, registered in the State of California. DATED: June 7, 2016 � (-- �x � 40 /,1/- BY: K. Dennis Klip,41hofeV Assessment Engineer R.C.E. No. 50255 Harris & Associates,. Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 1 OVERVIEW 1.1 INTRODUCTION June 7, 2016 The City of Dublin ( "City ") levies and collects special assessments on parcels within the City of Dublin Street Lighting Maintenance Assessment District No. 1999 -1 ( "District ") in order to maintain the public street lighting improvements within those areas. The assessments and methods of apportionment described in this Report utilize commonly accepted assessment engineering practices and have been calculated and proportionately spread to each parcel based on the special benefits received as approved by the City Council at the time the District was formed. 0: The District was initially formed in 1999 to provide a dedicated source of funding for the ongoing maintenance of public street lighting improvements within the boundaries of the Dublin Ranch development (excepting the golf course). Tract 7067, which is the Clifton Park development off of Mountain Rose Place in the western hills of the City. The Clifton Park development was annexed to the District in 2000, and Dublin Ranch Areas A and G were annexed in 2001. The remaining portions of Dublin Ranch, including areas B, C, F and H were annexed to the District in December 2005. Fallon Village (Tract 7586) was annexed to the District in 2007, and Jordan Ranch (Tract 8024, 8073 & 8074) was annexed to the District in 2011. One reason for the formation of the new district was that a special decorative lighting fixture was designed and installed throughout the area in order to create a community element as part of the development. A Diagram showing the exterior boundaries of the District is provided in this Report in Appendix A. Assessments are levied annually within the District pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code ( "1972 Act "). All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and are in compliance with the provisions of the California Constitution Article XIIID ( "Article MID"), which was enacted with the passage of Proposition 218 in November 1996. The formation of this District was initiated by petition from the developer, and the City has determined it is compliant with the substantive and procedural requirements of Proposition 218 and the 1972 Act. At the time the District was formed, the property owners agreed to the inclusion of a formula for increasing assessments for each fiscal year to offset increases due to inflation as described in the assessment methodology. Any future increase in the assessment rate in excess of the maximum allowable rate or substantial changes in the services provided would require the approval of the property owners subject to the assessment based upon a mailed ballot which would be sent to each property owner. Harris, & Associates,. 1 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 A summary of the assessments to be levied for each property type is shown in the table below. Property Type EDU Assessment Basis Factor Rate Single - Family Residential (SFR) 1.00 $ 41.67 Parcel Commercial 5.50 $ 229.19 Acre Exempt, Common Open Space, Public Land 0.00 $ 0.00 Parcel Harris, & Associates,. 2 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 2 IMPROVEMENTS June 7, 2016 The District provides for the continued installation, maintenance and servicing street lighting improvements within the public right -of -ways and within public easements within private streets which provide special benefit to parcels and properties within the District. For the first several years after formation of the District, this District did not incur a significant maintenance cost; however, as the street lights age, the number of repairs are increasing. In addition, a portion of the funds collected from the annual assessments of this District are being set aside for future capital improvement project costs in a separate improvement fund referred to as a Capital Improvement Fund (CIF). The Fund was established for proposed improvements and expenditures that are greater than can be conveniently raised from a single annual assessment. Anticipated projects include LED conversions and pole painting. The funds are not considered part of the regular maintenance of the improvements or of the Operating Reserve Fund. In Fiscal Year 2012 -13, 321 street lights in the District were retrofitted with new light emitting diode (LED) fixtures. The total construction cost for these improvements is $283,800. As part of this retrofit, the district received a one -time rebate amount of $39,950 from Pacific Gas & Electric (PG &E). As generally defined in the 1972 Act, maintenance and servicing of the street lighting improvements may include one or any combination of the following: 1) The installation or construction of public lighting facilities, including, but not limited to streetlights and traffic signals. 2) 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, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. 3) The maintenance or servicing, or both, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including, but not limited to: a) Repair, removal, or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation, repair or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. d) Electric current or energy, gas, or other agent for the lighting or operation of any other improvements. 4) Incidental expenses associated with the improvements including, but not limited to: a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; Harris, & Associates,. 3 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; and, f) Costs associated with any elections held for the approval of a new or increased assessment. Pursuant to the 1972 Act: "Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or any part of any improvement. "Service" or "servicing" means the furnishing of electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements. Drawings showing the specific locations of the improvements are on file in the City's Engineering Department and are made a part of this report by reference. Harris, & Associates,. 4 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 3 BUDGET June 7, 2016 All public streetlights and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed budget for District is shown on the following page. This includes an estimate of the costs of utilities, operations, services, administration and maintenance associated with the improvements, including all labor, personnel, equipment, materials and administrative expenses. The summary also shows the estimated fund balance, and the projected contribution/ (transfer) based upon the estimated expenditures and assessment revenue. Projected budgets are also shown for the next 2 fiscal years. For Fiscal Year 2017 -18 and 2018 -19, the budget assumes a 15% increase for the County maintenance contract, and 5% increase for electricity rates. The following describes the services and costs shown in the budget. DIRECT COSTS: Operating Supplies — The cost of ongoing maintenance and servicing of the street lighting improvements including street light repair parts and the labor associated with performing the repair work. In addition, a portion of this cost is set aside as a contingency amount for large repairs. Contract with Alameda County — The cost of street light maintenance provided from the County of Alameda based on the current fiscal year contract. California Street Light Association —The cost of Street Light Association dues based on relative number of lights within the District. Utilities Electricity —The cost of street light electrical energy use, including miscellaneous PG &E charges. Miscellaneous Expenses — Costs that cannot easily be categorized into any of the other Direct Costs defined above. ADMINISTRATIVE COSTS: District Administration, Consulting — The costs of contracting with professionals to provide services specific to the levy administration, including preparation of the Engineer's Report, resolutions, and levy submittal to the County. These fees can also include any additional administrative, legal, or engineering services specific to the District such as the cost to prepare and mail notices of the public meeting and hearing. Public Works Administration — The cost of services provided to administer the District from the Public Works department of the City of Dublin. County per Parcel Fee — The cost to the District for the County to collect assessments on the property tax bills. Alameda County charges 1.7% of the total amount levied. Harris & Associates,. 5 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 ADMINISTRATION COSTS City of Dublin Street Lighting Maintenance Assessment District 1999 -1 District Administration $ 3,520 $ 3,520 Adjusted Estimated Estimated 3,881 Forecast 3,997 Forecast $ Budget Expenses Budget $ Budget $ Budget $ FY 2015 -16 FY 2015 -16 FY 2016 -17 FY 2017 -18 FY 2018 -19 Inflation Rate (%) n/a n/a $ 5% TOTAL ADMINISTRATION 5% 8,970 5% DIRECT COSTS $ 9,021 $ 9,250 $ 9,411 COLLECTIONS /(CREDITS) APPLIED TO LEVY Maintenance $ 3,000 $ 3,500 $ 5,000 $ 5,500 $ 5,775 Contract with Alameda County $ 38,667 $ 38,667 $ 56,446 $ 61,009 $ 64,059 LED Conversion Project - O &M Savings $ - $ - $ - $ - $ - California Street Light Association $ 390 $ 390 $ 390 $ 390 $ 390 Utilities - Electricity $ 116,038 $ 116,038 $ 117,520 $ 123,261 $ 129,424 LED Conversion Project - Utilities Savings $ - $ - $ - $ - $ - MiscellaneousExpenses $ 170 $ 170 $ 170 $ 170 $ 170 TOTAL DIRECT $ 158,265 $ 158,765 $ 179,526 $ 190,330 $ 199,819 ADMINISTRATION COSTS District Administration $ 3,520 $ 3,520 $ 3,696 $ 3,881 $ 3,997 Public Works Administration $ 1,930 $ - $ - $ - $ - County per Parcel Fee $ 3,520 $ 4,662 $ 5,325 $ 5,369 $ 5,414 TOTAL ADMINISTRATION $ 8,970 $ 8,182 $ 9,021 $ 9,250 $ 9,411 COLLECTIONS /(CREDITS) APPLIED TO LEVY TOTAL DIRECT AND ADMIN COSTS $ 167,235 $ 166,947 $ 188,547 $ 199,580 $ 209,230 Reserve Collection /(Transfer) $ 118,594 $ 118,594 $ 124,667 $ 116,254 $ 109,204 Capital Improvement Fund Collection /(Transfer) $ - $ 2,095 $ - $ - $ - LED Conversion Project - PG &E Rebate $ - $ - $ - $ - $ - Delinquency Contingency $ 2,050 $ 2,050 $ 2,050 $ 2,050 $ 2,050 Other Revenues /(General Fund Contributions) TOTAL ADJUSTMENTS $ 120,644 $ 122,739 $ 126,717 $ 118,304 $ 111,254 Balance to Levy (Budgeted /Estimated) $ 287,879 $ 289,686 $ 313,214 $ 315,834 $ 318,453 Actual Collection Variance $ (12,303) $ 6,031 $ (0) $ (0) $ 0 APPLIED CHARGE $ 275,576 $ 295,717 $ 313,214 $ 315,834 $ 318,453 Total Revenue at Maximum Rate $ 330,712 $ 342,904 $ 374,406 $ 384,400 $ 394,716 Variance above /(below) Maximum Revenue $ (55,136) $ (47,187) $ (61,192) $ (68,566) $ (76,262) DISTRICTS STATISTICS Total Parcels 5,993 6,225 6,287 6,350 6,413 Total Parcels Levied 5,374 5,634 5,696 5,759 5,823 Total Equivalent Benefit Units 6,844.65 7,096.53 7,516.53 7,579.40 7,642.27 Proposed Levy per EDU $ 40.26 $ 41.67 $ 41.67 $ 41.67 $ 41.67 Maximum Allowed Levy per EDU $ 48.32 $ 48.32 $ 49.62 $ 51.11 $ 52.64 Applied Levy per EDU $ 40.26 $ 41.67 $ 41.67 $ 41.67 $ 41.67 Fund Balance Information Est. Beginning Reserve Fund Balance $ 484,288 $ 482,512 $ 547,388 $ 336,646 $ 427,826 Reserve Fund Adjustments $ 138,079 $ 118,594 $ 124,667 $ 116,254 $ 109,204 Transfer From /(To) Capital Improvement Fund $ (128,350) $ (68,349) $ (351,450) $ (38,020) $ (38,020) Prior /Penalities /Public Damage $ 6,889 $ 7,393 $ 7,830 $ 7,896 $ 7,961 Interest $ 2,265 $ 7,238 $ 8,211 $ 5,050 $ 6,417 Projected Reserve Balance at End of Year $ 503,172 $ 547,388 $ 336,646 $ 427,826 $ 513,388 Beginnng OF Balance $ 140,213 $ 140,213 $ 238,563 $ 238,563 $ 238,583 CIF Adjusments $ - $ - $ - $ - $ - LED Conversion Project $ - $ - $ (313,450) $ - $ - CIF Pole Painting $ (30,000) $ (30,000) $ (38,000) $ (38,000) $ (38,000) Transfer From /(To) OF Reserve Fund $ 128,350 $ 128,350 $ 351,450 $ 38,020 $ 38,020 Projected OF Year End Fund Balance $ 238,563 $ 238,563 $ 238,563 $ 238,583 $ 238,603 Harris & Associates,. 0 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 LEVY BREAKDOWN: June 7, 2016 Reserve Collection /(Transfer) — The 1972 Act pursuant to Chapter 1, Article 4 Section 22569 (a), provides for a District Reserve Fund for operations. Negative amounts shown for this budget item represent transfers from the Reserve Fund that reduces the Balance to Levy. Maintaining a fully funded Operating Reserve eliminates the need for the City to transfer funds from non - District accounts to pay for operational expenses during the first half of the fiscal year and also provides the District with sufficient funds to address any unforeseen or unusual expenditures that may occur during the year. Capital Improvement Fund Collection /(Transfer) — The 1972 Act pursuant to Chapter 5, beginning with Section 22660, provides for the District to establish by resolution an assessment installment plan for proposed improvements and expenditures that are greater than can be conveniently raised from a single annual assessment. Depending on the nature of the planned improvements, the collection of funds necessary to complete the project may be collected over a period up to thirty years, but typically not more than five years. The funds collected shall be accumulated in a separate improvement fund commonly referred to as a Capital Improvement Fund (CIF) and are not considered part of the regular maintenance of the improvements or the Reserve Fund. Because the money accumulated in the Capital Improvement Fund is for a specific planned project (budgeted separately), the amount shown for this item in the annual budget will typically be a positive number representing the amount being collected that year as part of the Balance to Levy. A negative number (Transfer) should only occur after the project has been completed and excess funds are being credited back to the District's regular accounts. The actual fund balances and expenditures for Capital Improvements are clearly identified under the Fund Balance Information section of the Budget. Delinquency Contingency — This is the estimated amount designated for delinquent property tax payments that the County is unable to collect in a given year. Other Revenue /General Fund (Contributions) — This item includes additional funds designated for the District that are not annual assessments. These funds are added to the District account to reduce assessments, and may be from non - District or District sources including City General Fund Contributions and /or interest earnings. Any funds indicated on this line will be shown as a negative number indicating a reduction in the amount to be levied and represent funds that do not have to be repaid. Balance to Levy — This is the total amount to be collected for the current Fiscal Year through the annual assessments (for special benefits). The Balance to Levy represents the sum of Total Direct and Administration Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Source, and the Contribution Replenishment. Only those costs related to the improvements identified as special benefits are levied and collected on the tax roll. Total Parcels Levied — The total number of parcels within the District that will receive the special benefits during the current fiscal year. Total EDUs — The total Equivalent Dwelling Units in the District applied to the parcels described above. Harris & Associates,. 7 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Proposed Levy per EDU —This amount represents the rate being applied to each parcel's individual EDU factor. The Levy per EDU is the result of dividing the "Special Assessment to Levy" by the Total EDUs of the District for the fiscal year. Maximum Allowed Levy per EDU — This is the rate per EDU approved by property owners within the District, in accordance with Proposition 218, adjusted for inflation as described in the Method of Apportionment. 3.1 ALLOWABLE MAXIMUM ASSESSEMENT RATE It is recognized that the cost of maintaining the District improvements increases slightly every year as a result of inflation. At the time the District was formed, the property owners approved a formula for increasing assessments for each future fiscal year to offset increases in costs due to inflation. The maximum assessment amount allowed for each fiscal year shall be increased in an amount equal to the annual percentage increase of the local San Francisco - Oakland -San Jose Area Consumer Price Index ( "Index ") for "All Urban Wage Earners and Clerical Workers" (applies to all costs except electricity), plus any actual increase in the cost of electricity. Each fiscal year the City shall identify the annual percentage difference in the Index between April of the current fiscal year and that of the previous April. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. The table below shows the calculations for the adjustment to the Maximum Allowable Assessment for Fiscal Year 2016 -17. Item Estiimated Budget FY 2016 -17 Forecast Budget FY 2017 -18 Forecast Budget FY 2018 -19 CPI April Prior Year 257.622 N/A N/A CPI April Current Year 264.565 N/A N/A % Increase /(Decrease) 2.695% 3.000% 3.000% Prior Year Maximum Levy per EDU less Electricty Costs $ 29.39 $ 22.04 $ 22.04 Current Year Maximum Levy per EDU- CPI only $ 30.18 $ 22.70 $ 22.70 Electricity Costs Current Year $ 117,520 $ 123,261 $ 129,424 Electricity Cost Costs Prior Year $ 116,038 $ 117,520 $ 123,261 Change in Electricity Cost $ 1,482 $ 5,741 $ 6,163 % Change in Electricity Cost 1.28% 4.89% 5.00% Max Amount per EDU for Electricity Cost $ 19.63 $ 19.63 $ 19.63 Maximum Levy per EDU current year $ 41.67 $ 41.67 $ 41.67 Harris & Associates,. W Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 In the event that the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the assessment without applying the adjustment formula to the amount levied. If the budget and assessments for a district require an increase greater than the adjustment set forth in the formula, then the proposed increase would be subject to approval by the District property owners. Each fiscal year, the maximum assessment rate shall increase at the maximum amount allowable regardless of whether the increase is levied to the parcels within the District. Harris & Associates,. 0 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 4 METHOD OF APPORTIONMENT June 7, 2016 4.1 GENERAL The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." The formula used for calculating assessments in the District therefore reflects the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on estimated benefit to each parcel. In addition, pursuant to Article XIIID Section 4: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable and an agency shall separate the general benefits from the special benefits conferred on a parcel." 4.2 BENEFIT ANALYSIS Each of the improvements have been carefully reviewed by the City and the corresponding assessments have been proportionately spread to each parcel based on special benefits received from the improvements as determined at the time the District was established. General Benefits — In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly affect the properties within the District. Although the improvements include public areas, easements, right -of -ways and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Special Benefits — The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the presence of Harris & Associates,. 10 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 public lighting in close proximity to those properties. June 7, 2016 The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically: 1) Enhanced deterrence of crime and the aid to police protection. 2) Increased nighttime safety on roads, streets and public areas. 3) Improved ability of pedestrians and motorists to see. 4) Improved ingress and egress to property. 5) Reduced vandalism and other criminal act and damage to improvements or property. 6) Improved traffic circulation and reduced nighttime accidents and personal property loss. The preceding special benefits contribute to the aesthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. All of the preceding special benefits contribute to a specific enhancement and desirability of each of the assessed parcels within the District. Non - Assessable Properties — Within the boundaries of the District, there are several types of properties that are considered to receive no special benefit from the District improvements and are therefore not assessed. These parcels include: 1) Publicly owned parcels that are reserved as Public Open Space or are developed as City Parks for active recreation and are maintained and serviced by the District; 2) Publicly owned wetland parcels; 3) Certain Public Utility parcels; 4) Privately owned open space parcels; and 5) Privately owned "sliver" parcels that have resulted from a lot line adjustment with an adjacent larger parcel. The adjacent larger parcel, of which these "sliver" parcels are a part, are assessed at the Residential Zone rate. 4.3 ASSESSMENT METHODOLOGY The special benefits received by each parcel within the District and each parcel's proportional annual assessment are calculated on the basis of a formula known as Equivalent Dwelling Units. The Equivalent Dwelling Unit (EDU) method of apportionment establishes a proportional benefit relationship between the various parcels within the District and the improvements maintained by the District. The typical single family residential parcel is assigned 1.0 Equivalent Dwelling Unit (EDU) since it represents more than 85% of the total parcels within the District. Harris & Associates,. 11 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 EDU's are assigned to the other land uses based upon the property's development status, type of development (County of Alameda land use code) and property size as shown in the table below. Property Type EDU Factor Basis Single - Family Residential (SFR) 1.00 Parcel Commercial 5.50 Acre Exempt, Common Open Space, Public Land 0.00 Parcel Single - Family Residential (SFR) — (County land use 1x, 2x, 7x) This land use identifies properties that are developed for single - family residential use and are assigned a factor of 1.00 EDU per parcel. This is the base value that all other land use types are compared and weighted against (i.e. Equivalent Dwelling Unit EDU). This land use classification may include, but is not limited to lots or parcels identified as single - family residential homes, condominium, vacant residential land zoned for four units or less, planned development (tract or townhouse type), and modular /manufactured single - family residential unit. Developed apartments are assigned a factor of 1.00 EDU per dwelling unit. Parcels with a vacant apartment land use are treated like commercial and assessed 5.50 EDU per acre. Commercial — (County land use 3x, 8x, 9x) This land use identifies properties that are considered improved commercial use and are assigned a factor of 5.50 EDU per gross acre. This land use classification may include, but is not limited to, lots or parcels identified as car washes, commercial garages, automotive dealerships, parking lots, parking garages service stations, funeral homes, nursing or boarding homes, hospitals, hotels /motels, banks, medical - dental, single and multi -story office buildings, bowling alleys, theaters, vacant commercial land, department stores, discount stores, restaurants, shopping centers, supermarkets, commercial or industrial condominium prior to sale of one unit, and miscellaneous commercial. Common Open Space — (County land use 0, 03 -05, 65) This land use identifies properties that are exempt from assessment and are assigned 0.00 EDU. This land use classification may include, but is not limited to, lots or parcels identified as exempt public agencies, property leased or owned by public utilities, cemeteries, and planned development common areas. The following formulas are used to calculate each property's assessment: Total Balance to Levy/ Total EDUs = Levy per EDU (Rate) Parcel EDU x Levy per EDU = Parcel Levy Amount Harris & Associates,. 12 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 5 ASSESSMENT ROLL June 7, 2016 The proposed assessment and the amount of the assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are contained in the Assessment Roll on file in the Office of the City Clerk of the City of Dublin, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Alameda and those records are, by reference, made part of this report. The assessments shown will be submitted to the County Auditor /Controller, and included on the property tax roll for each parcel shown in the assessment roll for fiscal year 2016 -17. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of the parcels as shown on the Alameda County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Alameda County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Harris & Associates,. 13 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 APPENDIX A — DISTRICT BOUNDARY MAP Harris & Associates,. 14 Engineer's Report Street Lighting Maintenance District No. 1999 -1 City of Dublin Fiscal Year 2016 -17 June 7, 2016 Harris & Associates,. 15 RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING PRELIMINARY ENGINEER'S REPORT, CONFIRMING DIAGRAM AND ASSESSMENT CITY OF DUBLIN STREET LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1999 -1 WHEREAS, by its Resolution No. 28 -16, a Resolution Directing Preparation of Annual Report for City of Dublin Street Lighting Maintenance Assessment District No. 1999 -1, Dublin Ranch (the "District "), this Council designated the City Engineer as Engineer of Work and ordered said Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 28 -16 and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and finds that each and every part of said report is sufficient; and that said report neither requires nor should be modified in any respect; NOW, THEREFORE, BE IT RESOLVED a) That the Engineer's estimate of the itemized and total costs and expenses of the acquisition of improvements and maintaining said improvements and of incidental expenses in connection therewith, as contained in said report be, and each of them are hereby preliminarily approved and confirmed; b) That the diagram showing the assessment district, description of the improvements to be acquired and maintained, and the boundaries and dimensions of the respective lots and parcels of land within said District, as contained in said report be, and it is hereby preliminarily approved and confirmed; c) That the assessment of the total amount of the cost and expenses of the proposed acquisition and maintenance of said improvements upon the several lots and parcels of land in said District in proportion to the estimated benefits to be received by such lots and parcels, respectively, from said acquisition and maintenance, and of the expenses incidental thereto, as contained in said report be, and they are hereby preliminarily approved and confirmed. PASSED, APPROVED AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk Mayor RESOLUTION NO. -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPOINTING TIME AND PLACE OF HEARING PROTESTS IN RELATION TO PROPOSED ASSESSMENTS STREET LIGHTING MAINTENANCE ASSESSMENT DISTRICT 1999 -1 WHEREAS, by its Resolution No. 28 -16, a resolution directing preparation of annual report for City of Dublin Street Lighting Maintenance Assessment District 1999 -1 (the "District "), this Council designated the City Engineer as Engineer of Work and ordered that Engineer to make and file a report in writing in accordance with and pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, said Engineer of Work has made and filed with the City Clerk a preliminary report in writing as called for in said Resolution No. 28 -16, and under and pursuant to said Act, which report has been presented to this Council for consideration; and WHEREAS, said Council has duly considered said report and each and every part thereof, and finds that each and every part of said report is sufficient; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE ACT, AS FOLLOWS: Section 1 Intention: The City Council hereby declares that it is its intention to seek the Annual Levy of the Districts pursuant to the Act, over and including the land within the District boundaries, and to levy and collect assessments on all such land to pay the annual costs of the improvements. The City Council finds that the public's best interest requires such levy and collection. Section 2 District Boundaries: The boundaries of the District are described as the boundaries previously defined in the formation documents of the original District, within the boundaries of the City of Dublin, within the County of Alameda, State of California. Section 3 Description of Improvements: The improvements within the District may include operation, maintenance, acquisition and servicing of street lighting and appurtenant facilities within the boundaries of the District. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a satisfactory operating condition. Section 4 Proposed Assessment Amounts: For Fiscal Year 2016 -2017, the proposed assessments are outlined in the Engineer's Report which details any changes or increases in the annual assessment. Section 5 Public Hearing(s): The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the Act. Section 6 Notice: The City Clerk is hereby directed to give notice of said hearing to all property owners in the District by causing the publishing of this Resolution once a week in a local newspaper published and circulated in the City, for two consecutive weeks not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this Resolution in official posting locations customarily used by the City Council for the posting of notices. Any interested person may file a written protest with the City Clerk prior to the conclusion of the Public Hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 21, 2016, at 7:00 p.m. or as soon thereafter as feasible in the City Council Chambers, located at 100 Civic Plaza, Dublin. Section 8 The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. PASSED, APPROVED, AND ADOPTED this 7th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk 2 Mayor