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HomeMy WebLinkAbout6.2 Street Lighting Maintenance District 1983-1; Landscape and Lighting District 1983-2; Landscape and Lighting District 1986-1; Landscape and Lighting District 1997-1; Street Lighting District 1999-1STAFF REPORT CITY COUNCIL Page 1 of 3 Agenda Item 6.2 DATE:June 21, 2022 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Street Lighting Maintenance District 1983-1; Landscape and Lighting District 1983-2; Landscape and Lighting District 1986-1; Landscape and Lighting District 1997-1; Street Lighting District 1999-1Preparedby:Jordan Foss,Management Analyst II EXECUTIVE SUMMARY:The City Council will consider approving the Engineer’s Reports and the levy of special assessments in each of the five assessment districts for Fiscal Year 2022-23. A public hearing is required to set the annual levy. STAFF RECOMMENDATION:Conduct the public hearing, deliberate, and adopt the Resolution Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering Levy of Assessment for City of Dublin Street Lighting Maintenance District 1983-1, Landscape and Lighting District 1983-2, Landscape and Lighting District 1986-1, Landscape and Lighting District 1997-1, and Street Lighting District 1999-1. FINANCIAL IMPACT:A summary of revenues, expenditures, and balances for each assessment district is shown in the table below. Revenues and expenditures for each assessment district are tracked separately. 523 Page 2 of 3 SUMMARY OF PROJECTED ASSESSMENT DISTRICTFISCAL YEAR 2022-23REVENUES & EXPENDITURES ST. LIGHT1983-1 STAGECOACH RDLANDSCAPE 1983-2 DOUGHERTY RDLANDSCAPE 1986-1 SANTA RITA LANDSCAPE1997-1 EAST DUBLINST. LIGHT1999-1PROJECTED REVENUE $320,395 $112,241 $198,669 $390,680 $336,937ESTIMATEDEXPENDITURES $305,399 $78,466 $128,102 $351,313 $262,041TRANSFER TO CAPITALIMPROVEMENT FUND $14,996 $33,775 $70,567 $39,367 $74,896BALANCE TO RESERVES $0 $0 $0 $0 $0RESERVES BALANCEESTIMATED BEGINNINGBALANCE1 $602,476 $337,959 $100,979 $1,217,805 $465,191RESERVE TRANSFER TO OPERATING FUND $0 $0 $0 $0 $0ESTIMATED INTERESTAND OTHER INCOME $0 $0 $0 $0 $0RESERVE TRANSFER TO CAPITAL IMPROVEMENT FUND $14,996 $33,775 $70,567 $39,367 $74,896TRANSFER OUT FOR CIP $0 $0 $0 ($195,000)($42,000)PROJECTED ENDINGBALANCE FISCAL YEAR2022-23 $617,472 $371,734 $171,546 $1,062,172 $498,087 1The Fund Balances shown in the table above, represent amounts held for both operating reserves and capital replacement. DESCRIPTION:At the City Council meeting held on May 17, 2022, the City Council initiated the annual proceedings, received the Preliminary Engineer’s Reports for each of the five assessment districts,and set a public hearing date of June 21, 2022 to receive comments on the proposed Fiscal Year 2022-23 assessments for each assessment district. Details related to each assessment district and the proposed assessment amounts can be found in the attached May 17, 2022, City Council Staff Report (Attachment 2).City Council will hold a public hearing, deliberate, and consider approving the Engineer’s Reports and ordering the levy of assessment for each of the following five assessment districts: Street Lighting Maintenance District No. 1983-1 524 Page 3 of 3 Landscape and Lighting District No. 1983-2 Landscape and Lighting District No. 1986-1 Landscape and Lighting District No. 1997-1 Street Lighting District No. 1999-1The Engineer’s Reports for each assessment district are included as Attachments 3 through 7. STRATEGIC PLAN INITIATIVE:None. NOTICING REQUIREMENTS/PUBLIC OUTREACH:Property owners in the Landscape and Lighting District 1983-2 and Landscape and Lighting District 1986-1 were mailed courtesy postcards with the public hearing date and proposed fiscal year assessments. Public hearing notices were published in the newspaper and posted at several City locations. Copies of the hearing notices and Engineer’s Reports were also posted on the City of Dublin website and the City Council Agenda was posted. ATTACHMENTS:1) Resolution Approving the Engineer's Report, Confirming Diagram and Assessment, and Ordering Levy of Assessment for City of Dublin Street Lighting Maintenance District 1983-1, Landscape and Lighting District 1983-2, Landscape and Lighting District 1986-1, Landscape and Lighting District 1997-1, and Street Lighting District 1999-12) City Council Staff Report dated May 17, 2022 (without attachments)3) Engineer'sReportforStreetLightingMaintenanceDistrict1983-14) Engineer'sReportforLandscapingandLightingDistrict1983-25) Engineer'sReportforLandscapingandLightingDistrict1986-16) Engineer'sReportforLandscapingandLightingDistrict1997-17) Engineer'sReportforStreetLightingMaintenanceDistrict1999-1 525 Attachment 1 Reso. No. XX-22, Item X.X, Adopted XX/XX/22 Page 1 of 2 RESOLUTION NO. XX – 22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE ENGINEER'S REPORT, CONFIRMING DIAGRAM AND ASSESSMENT, AND ORDERING LEVY OF ASSESSMENT FOR CITY OF DUBLIN STREET LIGHTING MAINTENANCE DISTRICT NO. 1983-1, LANDSCAPE AND LIGHTING DISTRICT 1983-2, LANDSCAPE AND LIGHTING DISTRICT 1986-1, LANDSCAPE AND LIGHTING DISTRICT 1997-1, AND STREET LIGHTING DISTRICT 1999-1 WHEREAS,by its Resolution No. 42-22 (the “Resolution”), directing preparation of annual reports for City of Dublin Street Lighting Maintenance Districts and Landscaping and Lighting Districts (the “Districts”), the City Council designated the City Engineer, or their designee, 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 reports were made and filed with the City Clerk and duly considered by this Council and found to be sufficient in every particular, whereupon it was determined that said reports should stand as Engineer's Reports for all subsequent proceedings under and pursuant to the aforesaid Resolution and that June 21, 2022, at 7:00 p.m. in the Council Chambers, Dublin Civic Center, 100 Civic Plaza, Dublin, California, and remotely via Zoom Communications, was appointed as the time and place for a hearing by the City Council on the question of the levy of the proposed assessment, notice of which hearing was published and posted in accordance with the Landscaping and Lighting Act of 1972; and WHEREAS,at the appointed time, said hearing was held, and all persons interested and desiring to be heard were given an opportunity to be heard, and all matters pertaining to said levy were heard and considered by this City Council, and this City Council thereby acquired jurisdiction to order said levy and confirmation of diagram and assessment prepared by and made a part of the reports of said Engineer to pay the cost and expenses thereof. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve that: (a)The property owners owning more than fifty percent of the area of assessable land within each of the Districts had not, at the conclusion of said hearing, filed written protests against the said proposed levy, or against the engineer's estimate of costs and expenses, or against the maps and description, or against the diagram or the assessment to pay for the costs and expenses thereof; and (b)The public interest, convenience, and necessity require that said levy be made; and (c)The Districts benefited by said improvements and to be assessed to pay the costs and expenses thereof, and the exterior boundaries thereof are as shown by a map thereof filed in the office of the City Clerk, which map is made a part hereof by reference thereto. 526 Reso. No. XX-22, Item X.X, Adopted XX/XX/22 Page 2 of 2 PASSED, APPROVED AND ADOPTED this 21st day of June 2022, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 527 STAFF REPORT CITY COUNCIL Agenda Item 4.3 DATE: May 17, 2022 TO:Honorable MayorandCityCouncilmembers FROM:LindaSmith, CityManager SUBJECT:Resolutions Directing Preparation of Annual Engineer’s Reports, Approving Preliminary Engineer’s Reports, and Appointing a Time and Place for Hearing Protests for Street Lighting Maintenance District 1983-1, Landscape and Lighting District 1983-2, Landscape and Lighting District 1986-1, Landscape and Lighting District 1997-1, and Street Lighting Maintenance District 1999-1Preparedby: Jordan Foss,Management Analyst II EXECUTIVE SUMMARY:The City Council willconsider directing preparation of the Fiscal Year 2022-23 Engineer’s Reports, approving the preliminary Fiscal Year 2022-23 Engineer's Reports, and scheduling a public hearing date of June 21, 2022 for the five assessment districts. STAFF RECOMMENDATION:Take the following actions: 1) Adopt the Resolution Directing Preparation of Annual Engineer’s Reports for Street Lighting Maintenance District 1983-1, Landscape and Lighting District 1983-2, Landscape and Lighting District 1986-1, Landscape and Lighting District 1997-1, and Street Lighting Maintenance District 1999-1; and 2) adopt the Resolution Approving the Preliminary Engineer’s Reports and Appointing a Time and Place for Hearing Protests for Street Lighting Maintenance District 1983-1, Landscape and Lighting District 1983-2, Landscape and Lighting District 1986-1, Landscape and Lighting District 1997-1, and Street Lighting Maintenance District 1999-1. FINANCIAL IMPACT:The cost of preparing the Engineer's Reports is includedin the annual adopted budget and is paid by each respective assessment district. A summary of revenues, expenditures, and balances of each district is shown in the following table. Revenues and expenditures for each assessment district are tracked separately. Attachment 2 528 SUMMARY OF PRELIMINARY ASSESSMENT DISTRICT PROJECTEDFISCALYEAR2022-2023REVENUES&EXPENDITURES ST. LIGHT1983-1 STAGECOACH RDLANDSCAPE 1983-2 DOUGHERTY RDLANDSCAPE 1986-1 SANTA RITA LANDSCAPE1997-1 EAST DUBLINST. LIGHT1999-1PROJECTED REVENUE $320,395 $112,241 $198,669 $390,680 $336,937ESTIMATEDEXPENDITURES $305,399 $78,466 $128,102 $351,313 $262,041TRANSFER TO CAPITALIMPROVEMENT FUND $14,996 $33,775 $70,567 $39,367 $74,896BALANCE TO RESERVES $0 $0 $0 $0 $0RESERVES BALANCEESTIMATED BEGINNINGBALANCE1 $602,476 $337,959 $100,979 $1,217,805 $465,191RESERVE TRANSFER TO OPERATING FUND $0 $0 $0 $0 $0ESTIMATED INTERESTAND OTHER INCOME $0 $0 $0 $0 $0RESERVE TRANSFER TO CAPITAL IMPROVEMENT FUND $14,996 $33,775 $70,567 $39,367 $74,896TRANSFER OUT FOR CIP $0 $0 $0 ($195,000)($42,000)PROJECTED ENDINGBALANCE FISCAL YEAR2022-23 $617,472 $371,734 $171,546 $1,062,172 $498,087 1The Fund Balances shown in the table above, represent amounts held for both operating reserves and capital replacement. DESCRIPTION:The procedure for establishing annual maintenance assessments is governed by the Landscaping and Lighting Act of 1972, which is State Law codified in the Streets and Highways Code. The procedure requires that the City Council direct preparation of Engineer’s Reports and consider approval of those reports for the City of Dublin’s two street lighting maintenance assessment districts and the three landscaping and lighting districts described below for Fiscal Year 2022-23. The City Council must also consider setting a public hearing date to hear any protests prior toapproving the levy of assessments in each district. Staff proposes the public hearing to be on June 21, 2022, in the City Council Chamber, located at 100 Civic Plaza, Dublin, and remotely via Zoom Communications. 529 Page 3 of 7 The five assessment districts formed under the Landscaping and Lighting Act of 1972 are briefly described below. More detailed information about each district, includinga map of theboundary of each district, can be found in Attachments 3 through 7.StreetLightingMaintenanceDistrict1983-1This District wasestablished toreplace the County Service Area, which had paid maintenanceand energy costs for public streetlights within the City of Dublin. The boundary of this assessment district encompasses the entire City, except for the Dublin Ranch area, Tracts 7067, 7586, 8024, 8073, and 8074, and the Boulevard project. The City Council approved formation of this District on August 2, 1983, with the initial assessment in the 1984-1985 tax year.The maximum assessment allowed under the authorizing documents is $19.34 per unit for residential uses and $106.37 per acre for commercial uses. The maximum assessment has been levied since Fiscal Year2007-08.There is no provision in the formationdocuments to increase the per unit levy. As noted in the Engineer’s Report any increase would require the approval of the property owners subject to the assessment.In past years, the largest expenditure within this District's operating expenses was the annual capital lease payment to Chevron Energy Solutions for a light emitting diode (LED) fixture retrofit project. This project took place in Fiscal Year 2012-13, retrofitting 2,821 streetlights. In Fiscal Year 2016-17, the City Council approved the use of a General Fund reserve to pay the annual capital lease payment; the entire lease balance was subsequently paid off by the General Fund reserve in Fiscal Year 2018-19. Without the debt expenditure, the District can build up reserves anda capital improvement fund balance for future repair andreplacement costs of streetlight infrastructure that is at the end of its service life or has been damaged due to automobile accidents.The proposedassessment amount for Fiscal Year2022-23 remains the same as Fiscal Year2021-22, as shown below. Property Type CurrentFiscal Year Proposed Fiscal Year2022-23 AnnualChange ($)Equivalent Dwelling Unit (EDU)$19.34 $19.34 $0CommercialPer Acre $106.37 per acre $106.37 per acre $0LandscapingandLightingDistrict1983-2(StagecoachRoad)This District providesfunds for the maintenance of certain landscape improvementsin theDublin Hills Estates and Amador Lakes developments along Stagecoach Road. The District's boundaries include all of Tract 4719 and cover the 150-unit single-family Dublin Hills Estates development and the Amador Lakes development. The City Council approved formation of this District on January 23, 1984, with the initial assessment in the 1985-1986 tax year.The District is responsible for the maintenance of the Stagecoach Road landscaping and the interior slope landscapingwithin Tract 4719. The spread of assessmentsassigns 61.6% of the 530 Page 4 of 7 total assessment to the single-family homes of Dublin Hills Estates and 38.4% to the Amador Lakes Apartments. The Fiscal Year 2022-23 assessments are expected to pay for the ongoing maintenance and utility costs associated with the District. Details of budgeted expenditures can be found within the Fiscal Year 2022-23 Preliminary Engineer’s Report.The assessment methodologyapprovedin Fiscal Year2003-04 byproperty owners in theDistrict includes an escalation clause that allows for adjustments to the assessment according to the Consumer Price Index and 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 2022-23 is $487.79 per single family residence and $82.48 per multi-family residence. The City can elect to levy less than the maximum based on reserve funds on hand and the budgeted costs for District expenditures.The proposedassessment amount for Fiscal Year2022-23 wasincreased 9.6%over the FiscalYear 2021-22 amount to increase the District capital improvement fund (CIF) balance, which will be used to fund repair and replacement of v-ditches and retaining walls within the District.Theproposedassessment amount forFiscal Year 2022-23is shown below.StagecoachRoadAssessments(District1983-2) Property Type CurrentFiscal Year Proposed Fiscal Year2022-23 AnnualChange ($)Dublin Hills Estate -Single Family Homes $409.40 $448.60 $39.20Amador Lakes -Apt/Condominiums $69.25 $75.87 $6.62LandscapingandLightingDistrict1986-1(VillagesatWillowCreek)This District was formedwith the initial assessment in the 1987-1988 tax yearand encompasses the Villages at Willow Creek development off Dougherty Road and north of Amador Valley Boulevard. The surrounding homes are apartment complexes, condominiums, and the 145-unit single-family development (Ridgecreek).The work performed by this District includes litter pickup, maintenance of fences, 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 owners 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 responsibilityofthe Alameda County Flood Control and Water Conservation District (Zone 7). The Fiscal Year 2022-23 assessments are expected to pay for the ongoing maintenance and utility costs associated with the District. Details related to the budgeted expenditures can be found within the Fiscal Year 2022-23 Preliminary Engineer’s Report.Theassessmentmethodologyapprovedin2001bypropertyownersintheDistrictincludesan 531 Page 5 of 7 escalation clausethat allowsfor adjustments to the assessment accordingtothe 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 2022-23 is$298.03per single family residence, $149.02per multi-family residence, and$1,192.10for commercial property.The proposedassessment amount for Fiscal Year2022-23 wasincreased 21.4%over the FiscalYear 2021-22 amount to increase the District CIF balance, which will be used to fund repair and replacement of additional plantings as well as sidewalk repairs within the District. The District CIF balance was also appropriated to a City Capital Improvement Program (CIP) project to remove, replace, and/or repair tubular steel fencing throughout the District.Theproposedassessment amount forFiscal Year 2022-23is shown below.VillagesatWillowCreekAssessments(District1986-1)Property Type CurrentFiscal Year Proposed Fiscal Year2022-23 AnnualChange ($)Single Family Homes $245.51 $298.03 $52.52Amador Lakes -Apt/Condominiums $122.76 $149.02 $26.25Commercial$982.04 $1,192.10 $210.06LandscapingandLightingDistrict1997-1(SantaRitaArea)This 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 coveredby this District is bound by Gleason Drive on the North, Interstate 580on the South, ArnoldRoad on the West, and Tassajara Road on the east.The District maintains portions of roadside landscaping for Dublin Boulevard, Hacienda Drive, Central Parkway,ArnoldRoad,Tassajara Road (westerlyportion), andGleason Drive. The District also maintains the trail and landscaping along the Tassajara Creek channel. Median landscape maintenance is not included in this District.Asprovidedin the Engineer’s Report, individual lots in residential subdivisionsare 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 as well as actual increases in the cost of utilities. This maximum allowable assessment is updated in the Engineer’s Report on an annual basis. The maximum assessment per acre in the Engineer’s Report for Fiscal Year 2022-23 is $1,588.25 per acre.Althoughthe assessment district formulaestablishes a maximumcost that can be levied, based on planned expenditures in the District the proposed assessment amount for Fiscal Year 2022-23 remains the same as Fiscal Year 2021-22, as shown below. The density of the various housing units changes the allocation on a per-acre basis and results in different assessments as shown 532 Page 6 of 7 below.SantaRitaAreaAssessments(District1997-1)Property Type CurrentFiscal Year Proposed Fiscal Year2022-23 AnnualChange ($)California Creekside Single‐Family Residential $128.52 $128.52 $0.00California Brookside Multi‐Family Residential $55.69 $55.69 $0.00Summer Glen ‐ Richmond American (North) Lots $112.54 $112.54 $0.00Summer Glen ‐ Richmond American (South) Lots $123.85 $123.85 $0.00Summer Glen ‐ Kaufman & Broad Lots $172.36 $172.36 $0.00Summer Glen ‐ Pulte Lots $216.24 $216.24 $0.00Dublin Greene Tract 7084 Single Family Residential $136.13 $136.13 $0.00Dublin Greene Tract 7149 Single Family Residential $102.50 $102.50 $0.00Dublin Greene Tract 7149 Condominiums $53.43 $53.43 $0.00Other Parcels Including Retail, Office, and Industrial $903.85 $903.85 $0.00StreetLightingMaintenanceDistrict1999-1(Dublin Ranch)This District funds the electric energy, maintenance, and repair costs associated with street lighting that has been installed in the Dublin Rancharea and Tracts 7067, 7586, 8024, 8073, and 8074. The City Council approved formation of this District on June 1, 1999, with the initial assessment in the 1999-2000 tax year.The District also includes a CIF reserve set aside to pay for improvement projects outside the normal operations andmaintenance costs, suchas painting a portion of the decorativestreetlight poles within the District. In additionto pole painting, it is planned that CIF will be used to complete a project to convert the existing decorative lights to more energy-efficient LED lights.The assessment methodology in the original Engineer’s Report for this District includes an escalation clause that allows for adjustments to the assessment according to the Consumer Price Index and 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 2022-23 adjusted by the approved adjustment formula is $64.14 per single family residence and $352.77 per acre for commercial parcels. The City can levy less than the maximum based onreserve funds on hand and the budgeted costs for District expenditures.The proposedassessment amount for Fiscal Year2022-23 remains the same as Fiscal Year2021-22, as shown below.DublinRanchStreetLightingAssessments(District1999-1)Property Type CurrentFiscal Year Proposed Fiscal Year2022-23 AnnualChange ($) 533 Page 7 of 7 Equivalent Dwelling Unit (EDU)$38.03 $38.03 $0.00Commercial Per Acre $209.15 $209.15 $0.00Upon City Council adoption of the resolution approving the respective preliminary Engineer’s Reports, a public hearingwill be held on June 21, 2022 at 7:00p.m. on the proposed assessments. STRATEGIC PLAN INITIATIVE:None. NOTICING REQUIREMENTS/PUBLIC OUTREACH:TheCityCouncilAgenda wasposted. ATTACHMENTS: 1)Resolution DirectingPreparation ofAnnualEngineer'sReports forStreet LightingMaintenance District 1983-1, Landscape andLightingDistrict 1983-2, Landscape andLightingDistrict 1986- 1, Landscape and Lighting District 1997-1, and Street Lighting Maintenance District 1999-1 2)Resolution Approving the Preliminary Engineer’s Reports and Appointing a Time and Placefor Hearing Protests for Street Lighting Maintenance District 1983-1, Landscape and Lighting District1983-2,Landscape andLighting District1986-1,Landscape andLightingDistrict1997- 1, and Street Lighting Maintenance District 1999-1 3)PreliminaryEngineer'sReportforStreetLightingMaintenanceDistrict1983-1 4)PreliminaryEngineer'sReportforLandscapingandLightingDistrict1983-2 5)PreliminaryEngineer'sReportforLandscapingandLightingDistrict1986-1 6)PreliminaryEngineer'sReportforLandscapingandLightingDistrict1997-1 7)PreliminaryEngineer'sReportforStreetLightingMaintenanceDistrict1999-1 534 Street Lighting Maintenance District No. 1983-1 Fiscal Year 2022-23 Final Engineer’s Report June 21, 2022 Attachment 3 535 Table of Contents Page No. Certificate ......................................................................................... ii Section I - Introduction ..................................................................... 1 Section II – Engineer’s Report ......................................................... 3 Part A – Plans and Specifications ......................................... 5 Part B – Estimate of Cost ...................................................... 7 Part C – Assessment District Diagram ................................ 12 Part D – Method of Apportionment of Assessments ............ 14 Part E - Assessment Roll .................................................... 19 536 ENGINEER'S REPORT CITY OF DUBLIN STREET LIGHTING MAINTENANCE DISTRICT NO. 1983-1 FISCAL YEAR 2022-23 The undersigned, acting on behalf of Francisco & Associates respectfully submits the enclosed Engineer's Report as directed by the Dublin City Council pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, provisions of the Landscaping and Lighting Act of 1972 and Section 22500 et al of the California Streets and Highways Code. The undersigned certifies that he is a Professional Engineer, registered in the State of California. Dated: May 18, 2022 By: Eduardo Espinoza, P.E. RCE # 83709 537 SECTION I INTRODUCTION 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. 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 method 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. General Description of the District The District was created in 1983 to replace the County of Alameda Lighting Service Area within the City of Dublin and to fund the maintenance and servicing costs for the City’s street lighting system. In Fiscal Year 1995-96, the City of Dublin acquired the PG&E owned streetlights within the District 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 except for Dublin Ranch; the Clifton Park development in the western hills; Tracts 7067, 8024, 8073 and 8074; and the Jordan Ranch Development. A reduced copy of the Assessment Diagram showing the exterior boundaries of the District is provided in Part C of this Report. Compliance with the California Constitution 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 compliant 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.” 538 The City has determined that the annual assessments originally established for the District were for the maintenance and operation of streetlights within the public street rights-of-way. As such, pursuant to Article XIIID Section 5(a), the pre‐existing assessment amount has been exempted from the procedural requirements of Article XIIID Section 4 since the amount of the assessment has not increased since the passage of Proposition 218. 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 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. Summary of District 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 contributed to the Capital Improvement Fund Balance for Fiscal Years 2022-23 and 2023-24, which is also reflected in the projected fund balances. However, should expenditures continue to rise to a level that exceeds the annual assessment revenue, a transfer from the Operating Fund Balance will be required in that fiscal year. Should annual transfers be required to cover annual expenditures, the fund balance will be drawn upon and depleted in future years. Should this circumstance occur, this may require a significant reduction in service levels in future years so that expenditures match assessment revenues or the City will need to contribute to the District from other available funds or increase the current assessment rate by receiving approval by property owners within the District. Property Type Assessment Rate Single Family Residential (SFR)$19.34 per Parcel Condominium $19.34 per Parcel Duplex, Multi ‐ Family Residential $38.68 per Parcel Triplex, Multi ‐ Family Residential $58.02 per Parcel Fourplex, Multi ‐ Family Residential $77.36 per Parcel Apartments, Multi ‐ Family Residential $116.04 per Parcel Commercial/Industrial/Institutional $106.37 per Acre Vacant Commercial/Industrial/Institutional $53.18 per Acre Rural $9.67 per Parcel Exempt, Cemeteries, Common Open Space $0.00 per Parcel TABLE 1: ASSESSMENTS TO BE LEVIED Street Lighting Maintenance District No. 1983-1 539 SECTION II ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE CITY OF DUBLIN STREET LIGHTING MAINTENANCE DISTRICT NO. 1983-1 FISCAL YEAR 2022-23 Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), and in accordance with the Resolution of Intention, adopted by the City Council of the City of Dublin on May 17, 2022, I, Eduardo Espinoza, the duly appointed Engineer of Work, Assessment Engineer for the City of Dublin Street Lighting Maintenance District No. 1983-1 (the “District”) submit the following Report, consisting of Section I (Introduction), and this, Section II (Engineer’s Report), which consists of five (5) parts as follows: PART A: PLANS AND SPECIFICATIONS This part describes the improvements maintained by the District. Plans and specifications for the improvements are on file in the Office of the Director of Public Works of the City of Dublin and are incorporated herein by reference. PART B: ESTIMATE OF COST This part contains an estimate of the cost of the proposed improvements to be maintained for Fiscal Year 2022-23, including incidental costs and expenses in connection therewith. The estimate is attached hereto and is on file in the Office of the Director of Public Works of the City of Dublin. PART C: ASSESSMENT DISTRICT DIAGRAM This part incorporates a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District and the lines and dimensions of each lot or parcel of land within the District. This Diagram has been prepared by the Engineer of Work and is on file in the Office of the Director of Public Works of the City of Dublin. 540 The lines and dimension of each lot or parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year when this Report was prepared. The Assessor’s maps and records are incorporated by reference herein and made a part of this Report. PART D: METHOD OF APPORTIONMENT OF ASSESSMENTS This part describes the method of apportionment of assessments, based upon each parcel’s land use classification within the District in proportion to the estimated special benefits to be received. PART E: ASSESSMENT ROLL This part contains an assessment of the estimated cost of the improvements apportioned to each benefited parcel of land within the District. The Assessment Roll is filed in the Office of the City Clerk of the City of Dublin and is incorporated in this Report. The list is keyed to the records of the Alameda County Assessor, which are incorporated herein by reference. 541 PART A PLANS AND SPECIFICATIONS The District provides for the continued installation, maintenance, and servicing of street lighting improvements within the public right-of-way 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 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. 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. 542 "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 Public Works Department and are made a part of this report by reference. 543 PART B ESTIMATE OF COSTS 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 always been sufficient to fund 100% of the annual operations and maintenance costs of street lighting in past years. In years where the revenues were less than the costs to maintain the District improvements, the District transferred funds from the District’s existing fund balances to fund the shortfall in assessment revenues. Although the District has seen an increase in revenue because of new development, the increases in costs have increased much more quickly than the increase in assessment revenue because of growth. The proposed cost estimate for the District is shown in Table 2. 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 for the next two (2) fiscal years. 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 cost estimates are also shown for two (2) fiscal years. The following describes the general services and costs shown in the cost estimate. District Costs Operating Supplies – The cost of supplies for 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 both large scheduled and unscheduled, but necessary 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 streetlights within the District. Utilities Electricity – The cost of streetlight electrical energy use, including miscellaneous utility charges. Improvements (Not Building) – The cost of improvements (not building) includes costs associated with the maintenance, construction, and rehabilitation of authorized improvements. 544 Miscellaneous Expenses – Costs that cannot easily be categorized into any of the other District Costs defined above. Legal Notices – The cost of legal notices includes costs associated with preparation and publishing of any, and all required legal notices associated with the District. District Administration – The costs of contracting with professionals to provide services specific to the annual 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 public works administration includes costs derived by the City’s Public Works Department or other department in relation to the administration and management of the District. County Collection Fee – The cost to the District for the County to collect assessments on the annual secured property tax bills. Alameda County charges 1.7% of the total amount levied. Miscellaneous Costs and Collections/(Credits) Applied to Levy 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 cost estimate 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 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 cost estimate 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 annual fund Reserve Collection/(Transfer) and Capital 545 Improvement Fund Collection/(Transfer) are shown under the Fund Balance Information section of the Cost Estimate. 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 District (Direct and Administration) Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Sources, and the Contribution Replenishment (if any). Only those costs related to the improvements identified as conferring special benefits to property within the District are levied and collected on the tax roll. The following page shows the cost estimates for Fiscal Year 2022-23 and 2023-24. 546 FY 2022-23 Cost Estimate Projected FY 2023-24 Cost Estimate DISTRICT REVENUES Estimated Assessment Revenues 315,395$ 315,395$ Contributions from Other Revenue Sources 5,000$ 5,500$ Total District Revenues1 320,395$ 320,895$ DISTRICT COSTS Operating Supplies 10,000$ 10,000$ Contract with Alameda County 88,786$ 93,225$ California Street Light Association 1,000$ 1,000$ Utilities - Electricity 192,383$ 198,155$ Improvements (Not Building)-$ -$ Miscellaneous -$ -$ Legal Notices 575$ 592$ District Administration 6,655$ 6,855$ Public Works Administration -$ -$ County Collection Fee 6,000$ 6,180$ Total District Costs 305,399$ 316,007$ MISCELLANEOUS COSTS AND COLLECTIONS/(CREDITS) APPLIED TO LEVY Reserve Collection/(Transfer)-$ 5,304$ Capital Improvement Fund Collection/(Transfer)14,996$ (416)$ Total Miscellaneous Costs and Collections/(Credits) Applied to Levy 14,996$ 4,888$ Balance to Levy 315,395$ 315,395$ Variance Between Estimated Assessment Revenues and Balance to Levy -$ -$ Total Assessment Revenue at Maximum Rate 315,395$ 315,395$ Variance above/(below) Maximum Assessment Revenue -$ -$ FUND BALANCE INFORMATION Beginning Operating Reserve Fund Balance (est. 7/1/22 and 7/1/23)152,700$ 152,700$ Reserve Fund Adjustments -$ 5,304$ Transfer From/(To) Capital Improvement Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending Operating Reserve Fund Balance (est. 6/30/23 and 6/30/24)152,700$ 158,003$ Beginning CIF Balance (est. 7/1/22 and 7/1/23)449,776$ 464,772$ CIF Adjustment 14,996$ (416)$ Transfer From/(To) Reserve Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending CIF Balance (est. 6/30/23 and 6/30/24)464,772$ 464,356$ 1Total District Revenues includes the estimated assessment revenues for each fiscal year and contributions from other revenue sources such as interest earnings, etc. Table 2: City of Dublin Street Lighting Maintenance District No. 1983-1 547 Capital Improvement Projects In addition to collecting funds annually for maintenance, funds are also allowed to be collected for capital improvement projects. Capital improvement projects generally include the repair and replacement of public improvements authorized to be maintained by the District. These funds are collected and often accumulated in a separate fund and are not considered to be a part of the regular maintenance of the improvements. Following is a list of capital improvement projects the City plans to address utilizing District funds in the upcoming fiscal years and thereafter as funds allow. Citywide Streetlight Replacement: As needed replacement of streetlights that are at the end of their service life or that have been damaged due to automobile accidents. 548 PART C ASSESSMENT DISTRICT DIAGRAM The boundaries of the District are shown herein. The lines and dimensions of each parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A reduced copy of the Assessment Diagram is shown on the following page. 549 City of DublinStreet Lighting Maintenance District No. 1983-1Assessment Diagram Prepared by Francisco & Associates, Inc. N:\Dublin\FY18-19\Diagrams\LLAD1983-1_Assessment Diagram (SA 04/20/2018) ¯3,250 0 3,250 6,5001,625 Feet Legend ! ! ! !LLAD 1983-1 BoundaryCity Limit Parcel Lines Parcels within LLAD 1983-1 Dublin Blvd S a n R a m o n R d Ta s s a j a r a R d 550 PART D METHOD OF APPORTIONMENT OF ASSESSMENTS 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.” 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, rights-of-way, 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 551 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) outlined 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 as enhanced by the presence of public lighting near those properties. The special benefits conferred on property from street lighting and other public lighting facilities includes 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 acts 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 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; 552 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 rate Assessment Methodology The special benefits received by each parcel within the District and each parcel’s proportional annual assessment are calculated based on a formula that utilizes 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 1.00 Equivalent Dwelling Unit (EDU) since it represented 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%). 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 units. Condominium Unit — (County land use 73) this land use identifies properties that are subdivided residential parcels that have more than one residential unit developed on the property. This land use is assigned 1.00 EDU per unit. Property Type Assessment Rate Single Family Residential (SFR)$19.34 per Parcel Condominium $19.34 per Parcel Duplex , Multi‐Family Residential $38.68 per Parcel Triplex , Multi‐Family Residential $58.02 per Parcel Fourplex , Multi‐Family Residential $77.36 per Parcel Apartments , Multi‐Family Residential $116.04 per Parcel Commercial/Industrial/Institutional $106.37 per Acre Vacant Commercial/Industrial/Institutional $53.18 per Acre Rural $9.67 per Parcel Exempt, Cemeteries, Common Open Space $0 per Parcel TABLE 1: ASSESSMENTS TO BE LEVIED Street Lighting Maintenance District No. 1983-1 553 Duplex, Multi-Family Residential — (County land use 22) this land use identifies properties that are developed for multi-family residential use and are assigned a factor of 2.00 EDU per parcel. This land use classification includes double or duplex units. Triplex, Multi-Family Residential — (County land use 23) this land use identifies properties that are developed for multi-family residential use and are assigned a factor of 3.00 EDU per parcel. This land use classification includes triplex units; or double or duplex units together with a single-family home. Fourplex, Multi-Family Residential — (County land use 24) this land use identifies properties that are developed for multi-family 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, two doubles or duplexes, or a combination thereof. Apartment Complex, Multi-Family Residential — (County land use 7x, except 73) This land use identifies properties that are developed for multi-family 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 for 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, or 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, private schools, churches, lodge-halls, clubhouses, and other institutional 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 554 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 the 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. 555 PART E 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 on file under separate cover with the City Clerk. Furthermore, 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 2022-23. 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. 556 Landscape & Lighting District No. 1983-2 Fiscal Year 2022-23 Final Engineer’s Report June 21, 2022 Attachment 4 557 Table of Contents Page No. Certificate ......................................................................................... ii Section I - Introduction ..................................................................... 1 Section II – Engineer’s Report ......................................................... 3 Part A – Plans and Specifications ......................................... 5 Part B – Estimate of Cost ...................................................... 7 Part C – Assessment District Diagram ................................ 11 Part D – Method of Apportionment of Assessments ............ 13 Part E - Assessment Roll .................................................... 18 558 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT NO. 1983-2 FISCAL YEAR 2022-23 The undersigned, acting on behalf of Francisco & Associates respectfully submits the enclosed Engineer's Report as directed by the Dublin City Council pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, provisions of the Landscaping and Lighting Act of 1972 and Section 22500 et al of the California Streets and Highways Code. The undersigned certifies that he is a Professional Engineer, registered in the State of California. Dated: May 18, 2022 By: Eduardo Espinoza, P.E. RCE # 83709 559 SECTION I INTRODUCTION 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”) 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. General Description of the District The District was initially formed in 1983 to provide a dedicated source of funding for the ongoing maintenance of street landscaping within Tract 4719. The District originally included the maintenance of Stagecoach Park and the landscaping along 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 of 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. A reduced copy of the Assessment Diagram showing the exterior boundaries of the District is provided in Part C of this Report. Compliance with the California Constitution 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. 560 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 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. However, in 2003/2004, the City conducted a public hearing that included a mailed ballot to all the property owners in this District proposing an increased assessment to maintain and replace certain landscaping improvements. In accordance with the requirements of Proposition 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 more than 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. Summary of District A summary of the assessments to be levied in Fiscal Year 2022-23 for each property type is shown in the table below. Property Type Assessment Rate Single Family Residential (SFR)$448.60 per Parcel Multi Family Residential (MFR)$75.87 per Parcel/Unit Exempt, Cemeteries, Common Open Space $0.00 per Parcel TABLE 1: SUMMARY OF PROPOSED ASSESSMENTS Landscape & Lighting District No. 1983-2 561 SECTION II ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE CITY OF DUBLIN LANDSCAPE AND LIGHTING DISTRICT NO. 1983-2 FISCAL YEAR 2022-23 Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), and in accordance with the Resolution of Intention, adopted by the City Council of the City of Dublin on May 17, 2022, I, Eduardo Espinoza, the duly appointed Engineer of Work, Assessment Engineer for the City of Dublin Landscape and Lighting District No. 1983-2 (the “District”) submit the following Report, consisting of Section I (Introduction), and this, Section II, which consists of five (5) parts as follows: PART A: PLANS AND SPECIFICATIONS This part describes the improvements maintained by the District. Plans and specifications for the improvements are on file in the Office of the Director of Public Works of the City of Dublin and are incorporated herein by reference. PART B: ESTIMATE OF COST This part contains an estimate of the cost of the proposed improvements to be maintained for Fiscal Year 2022-23, including incidental costs and expenses in connection therewith. The estimate is attached hereto and is on file in the Office of the Director of Public Works of the City of Dublin. PART C: ASSESSMENT DISTRICT DIAGRAM This part incorporates a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District and the lines and dimensions of each lot or parcel of land within the District. This Diagram has been prepared by the Engineer of Work and is on file in the Office of the Director of Public Works of the City of Dublin. 562 The lines and dimension of each lot or parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year when this Report was prepared. The Assessor’s maps and records are incorporated by reference herein and made a part of this Report. PART D: METHOD OF APPORTIONMENT OF ASSESSMENTS This part describes the method of apportionment of assessments, based upon each parcel’s land use classification within the District in proportion to the estimated special benefits to be received. PART E: ASSESSMENT ROLL This part contains an assessment of the estimated cost of the improvements apportioned to each benefited parcel of land within the District. The Assessment Roll is filed in the Office of the City Clerk of the City of Dublin and is incorporated in this Report. The list is keyed to the records of the Alameda County Assessor, which are incorporated herein by reference. 563 PART A PLANS AND SPECIFICATIONS 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, 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; 564 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 on file in the City’s Public Works Department and are made a part of this report by reference. 565 PART B ESTIMATE OF COSTS All landscape and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed cost estimate for the District is shown on a following page herein. 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 cost estimates are also shown for the next two (2) fiscal years. The following describes the general services and costs shown in the cost estimate. District Costs 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 District Costs defined above. Legal Notices – The cost of legal notices includes costs associated with preparation and publishing of any, and all required legal notices associated with the District. District Administration – The costs of contracting with professionals to provide services specific to the annual 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 public works administration includes costs derived by the City’s Public Works Department or other department in relation to the administration and management of the District. 566 County Collection Fee – The cost to the District for the County to collect assessments on the annual secured property tax bills. Alameda County charges 1.7% of the total levy amount. Miscellaneous Costs and Collections/(Credits) Applied to Levy 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 cost estimate 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 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 cost estimate 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 cost estimate. 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 District (Direct and Administration) Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Sources, and the Contribution Replenishment (if any). Only those costs related to the improvements identified as conferring special benefits to property within the District are levied and collected on the tax roll. The following page shows the cost estimates for Fiscal Year 2022-23 and 2023-24. 567 FY 2022-23 Cost Estimate Projected FY 2023-24 Cost Estimate DISTRICT REVENUES Estimated Assessment Revenues 109,241$ 111,425$ Contributions from Other Revenue Sources 3,000$ 3,300$ Total District Revenues1 112,241$ 114,725$ DISTRICT COSTS Maintenance - Landscape (MCE)42,772$ 43,803$ Utilities - Water 28,308$ 29,723$ Utilities - Electricity 1,638$ 1,720$ Miscellaneous Expenses -$ -$ Legal Notices 575$ 592$ District Administration 3,410$ 3,512$ Public Works Administration -$ -$ County Collection Fee 1,763$ 1,816$ Total District Costs 78,466$ 81,166$ MISCELLANEOUS COSTS AND COLLECTIONS/(CREDITS) APPLIED TO LEVY Reserve Collection/(Transfer)-$ 1,350$ Capital Improvement Fund (CIF) Collection/(Transfer)33,775$ 32,209$ Total Miscellaneous Costs and Collections/(Credits) Applied to Levy 33,775$ 33,559$ Balance to Levy 109,241$ 111,425$ Variance Between Estimated Assessment Revenues and Balance to Levy -$ -$ Total Assessment Revenue at Maximum Rate2 118,778$ 121,154$ Variance above/(below) Maximum Assessment Revenue (9,538)$ (9,729)$ FUND BALANCE INFORMATION Beginning Operating Reserve Fund Balance (est. 7/1/22 and 7/1/23)39,233$ 39,233$ Reserve Fund Adjustments -$ 1,350$ Transfer From/(To) Capital Improvement Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending Operating Reserve Fund Balance (est. 6/30/23 and 6/30/24)39,233$ 40,583$ Beginning CIF Balance (est. 7/1/22 and 7/1/23)298,726$ 332,501$ CIF Adjustment 33,775$ 32,209$ Transfer From/(To) Reserve Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending CIF Balance (est. 6/30/23 and 6/30/24)332,501$ 364,709$ 1Total District Revenues includes the estimated assessment revenues for each fiscal year and contributions from other revenue sources such as interest earnings, etc. 2The Maximum Assessment Revenue for Fiscal Year (FY) 2023/24 was estimated to be equal to the FY 2022/23 Maximum Assessment Revenues and escalated by 2%. Table 2: City of Dublin Landscape & Lighting District No. 1983-2 568 Capital Improvement Projects In addition to collecting funds annually for maintenance, funds are also allowed to be collected for capital improvement projects. Capital improvement projects generally include the repair and replacement of public improvements authorized to be maintained by the District. These funds are collected and often accumulated in a separate fund and are not considered to be a part of the regular maintenance of the improvements. Following is a list of capital improvement projects the City plans to address utilizing District funds in the upcoming fiscal years and thereafter as funds allow. General Improvements: The City has identified the need for minor retaining wall repairs, additional irrigation and planting, as well as repairs to V-ditches, which fall outside the scope of the regular maintenance budget for the District. Repairs will be addressed based upon need and available fund balance in the upcoming two-year cycle. 569 PART C ASSESSMENT DISTRICT DIAGRAM The boundaries of the District are shown herein. The lines and dimensions of each parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A reduced copy of the Assessment Diagram is shown on the following page. 570 City of DublinLandscape and Lighting District No. 1983-2Assessment Diagram Prepared by Francisco & Associates, Inc. S t a g e c o a c h R d Q u a r t z C i r T u r q u o i s e S t Co r a l W y To p a z C i r J a d e C i r Ama d o r V a l l e y B l v d Vi l l a g e P k w y Ir o n H o r s e R e g i o n a l T r a i l Legend LLAD 1983-2 BoundaryCity Limit Parcel Lines Parcels within LLAD 1983-2 0 700 1,400350 Feet N:\Dublin\FY18-19\Diagrams\LLAD1983-2_Assessment Diagram (SA 01/24/2018) 571 PART D METHOD OF APPORTIONMENT OF ASSESSMENTS 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.” 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, rights-of-way, 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 572 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 near 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. 573 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 rate. Assessment Methodology 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/condominiums of Amador Lakes Complex. Maximum Assessment Rate It is recognized that the cost of maintaining the District improvements increases slightly every year because 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 for each property type shall be increased each fiscal year 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” which is applied to all costs except utilities (water and electricity), plus the actual percentage increase in utility costs (collectively, “Annual Escalation Factor”). In order to implement the District’s Annual Escalation Factor annually, two rates were developed based on the cost estimate that was prepared at the time the property owners approved the annual escalator. The first rate (the “CPI Rate”) was created to encompass the annual District cost increases except for utilities. The second rate (the “Utility Rate”) was created to encompass the annual utility cost increases. The Index is to be applied annually to the prior year’s maximum CPI Rate for each property type to pay for all costs except utilities. The maximum Utility Rate was established to pay for all utility costs for each property type and is to be increased annually 574 by the percentage change in the budgeted amount for utilities as shown in the District’s annual fiscal year Engineer’s Reports. The increase in utility costs shall be calculated by taking the upcoming fiscal year’s budgeted amount for utilities and subtracting the District’s previous highest yearly budgeted amount for utilities. This difference is used to calculate the annual increase in the Utility Rate for each property type. The combination of the maximum CPI Rate and maximum Utility Rate (collectively, “Maximum Assessment Rate”) shall equal the Maximum Assessment Rate for the upcoming fiscal year. Please see Table 3 for details regarding the Maximum Assessment Rate for Fiscal Year 2022-23. The timing of the annual percentage increase of the Index was changed beginning in 2018 and for each year thereafter for administrative purposes, to ensure the City is allowed the time necessary to have all annual documents prepared and approved by the City Council by June of each year, and to meet both County submittal and statutory requirements. Each fiscal year, the City shall identify the annual percentage difference in the Index between the most recent calendar year and that of the prior calendar year; more specifically, the annual percentage change used to escalate the prior year’s assessment rates for Fiscal Year 2022-23 was determined based on the difference using the annual amount for calendar years 2021 and 2020. 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 index as approved by the City Council for determining fluctuations in the cost of living. The following table shows the Maximum Assessment Rates allowable for Fiscal Year 2022-23. 575 If the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the ensuing fiscal year’s assessment without applying the adjustment formula to the amount levied. If the cost estimate and assessments for the 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. CPI for 2020 Calendar Year1 292.601 CPI for 2021 Calendar Year1 304.602 % Change in CPI - Increase 4.10% FY 2021/22 Maximum Rate per SFR - CPI Rate $322.53 FY 2021/22 Maximum Rate per MFR - CPI Rate $54.54 FY 2022/23 Maximum Rate per SFR - CPI Rate $335.76 FY 2022/23 Maximum Rate per MFR - CPI Rate $56.77 Prior Year Maximum Utility Budget 2 $37,020 Utility Budget for FY 2022/23 $29,946 % Change in Utilities Rate - Increase3 0.000% FY 2021/22 Maximum Rate per SFR - Utility Rate $152.03 FY 2021/22 Maximum Rate per MFR - Utility Rate $25.71 FY 2022/23 Maximum Rate per SFR - Utility Rate $152.03 FY 2022/23 Maximum Rate per MFR - Utility Rate $25.71 FY 2021/22 Maximum Assessment Rate per SFR $474.56 FY 2021/22 Maximum Assessment Rate per MFR $80.24 FY 2022/23 Maximum Assessment Rate per SFR4 $487.79 FY 2022/23 Maximum Assessment Rate per MFR4 $82.48 1 CPI is based off of the All Urban Wage Earners and Clerical Workers. 2 The FY 2020/21 Budget Amount for Utilities was the previous highest amount budgeted for utility costs. 3 Equals the % difference between the FY 2021/22 and FY 2022/23 Maximum Utility Rate. If the Utility Budget does not increase, no increase will be realized. 4 Equals the FY 2021/22 Maximum CPI Rate + Maximum Utility Rate. TABLE 3: MAXIMUM ASSESSMENT RATE Landscape & Lighting District No. 1983-2 576 PART E 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 on file under separate cover with the City Clerk. Furthermore, 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 2022-23. 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. 577 Landscape & Lighting District No. 1986-1 Fiscal Year 2022-23 Final Engineer’s Report June 21, 2022 Attachment 5 578 Table of Contents Page No. Certificate ......................................................................................... ii Section I - Introduction ..................................................................... 1 Section II – Engineer’s Report ......................................................... 3 Part A – Plans and Specifications ......................................... 5 Part B – Estimate of Costs .................................................... 6 Part C – Assessment District Diagram ................................ 10 Part D – Method of Apportionment of Assessments ............ 12 Part E - Assessment Roll .................................................... 17 579 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPE AND LIGHTING DISTRICT NO. 1986-1 FISCAL YEAR 2022-23 The undersigned, acting on behalf of Francisco & Associates respectfully submits the enclosed Engineer's Report as directed by the Dublin City Council pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, provisions of the Landscaping and Lighting Act of 1972 and Section 22500 et al of the California Streets and Highways Code. The undersigned certifies that he is a Professional Engineer, registered in the State of California. Dated: May 18, 2022 By: Eduardo Espinoza, P.E. RCE # 83709 580 SECTION I INTRODUCTION The City of Dublin (“City”) levies and collects special assessments on parcels within Landscape and Lighting District No. 1986-1 (“District”) to maintain the improvements within the Villages in the Willow Creek area. The assessments and method 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. General Description of the District The District was initially formed in 1986 to provide a dedicated source of funding for the ongoing maintenance of landscaping, including fencing and sound walls, 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(s) or property owner(s) for those individual developments. A reduced copy of the Assessment Diagram showing the exterior boundaries of the District is provided in Part C of this Report. Compliance with the California Constitution 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 Fiscal Year 2001-02, the assessments in the 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. 581 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. Summary of District A summary of the assessments to be levied in Fiscal Year 2022-23 for each property type is shown in the table below. Property Type EDU Factor Single Family Residential (SFR)1.00 per Parcel $298.03 per Parcel Multi Family Residential (MFR)0.50 per Unit $149.02 per Unit Commercial 4.00 per Parcel $1,192.10 per Parcel Exempt, Cemeteries, Common Open Space 0.00 per Parcel $0.00 per Parcel Assessment Rate TABLE 1: SUMMARY OF PROPOSED ASSESSMENTS Landscape & Lighting District No. 1986-1 582 SECTION II ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE CITY OF DUBLIN LANDSCAPE AND LIGHTING DISTRICT NO. 1986-1 FISCAL YEAR 2022-23 Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), and in accordance with the Resolution of Intention, adopted by the City Council of the City of Dublin on May 17, 2022, I, Eduardo Espinoza, the duly appointed Engineer of Work, Assessment Engineer for the City of Dublin Landscape and Lighting District No. 1986-1 (the “District”) submit the following Report, consisting of Section I (Introduction), and this, Section II, which consists of five (5) parts as follows: PART A: PLANS AND SPECIFICATIONS This part describes the improvements maintained by the District. Plans and specifications for the improvements are on file in the Office of the Director of Public Works of the City of Dublin and are incorporated herein by reference. PART B: ESTIMATE OF COST This part contains an estimate of the cost of the proposed improvements to be maintained for Fiscal Year 2022-23, including incidental costs and expenses in connection therewith. The estimate is attached hereto and is on file in the Office of the Director of Public Works of the City of Dublin. PART C: ASSESSMENT DISTRICT DIAGRAM This part incorporates a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District and the lines and dimensions of each lot or parcel of land within the District. This Diagram has been prepared by the Engineer of Work and is on file in the Office of the Director of Public Works of the City of Dublin. 583 The lines and dimension of each lot or parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year when this Report was prepared. The Assessor’s maps and records are incorporated by reference herein and made a part of this Report. PART D: METHOD OF APPORTIONMENT OF ASSESSMENTS This part describes the method of apportionment of assessments, based upon each parcel’s land use classification within the District in proportion to the estimated special benefits to be received. PART E: ASSESSMENT ROLL This part contains an assessment of the estimated cost of the improvements apportioned to each benefited parcel of land within the District. The Assessment Roll is filed in the Office of the City Clerk of the City of Dublin and is incorporated in this Report. The list is keyed to the records of the Alameda County Assessor, which are incorporated herein by reference. 584 PART A PLANS AND SPECIFICATIONS The District provides for the continued maintenance and servicing of landscaping, including fencing and sound-walls within the public rights-of-way 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, 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 Public Works Department and are made a part of this report by reference. 585 PART B ESTIMATE OF COSTS All landscaping and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed cost estimate for the District is shown on a following page herein. 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 cost estimates are also shown for the next two (2) fiscal years. The following describes the general services and costs shown in the cost estimate. District Costs 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 District Costs defined above. Legal Notices – The cost of legal notices includes costs associated with preparation and publishing of any, and all required legal notices associated with the District. District Administration – The costs of contracting with professionals to provide services specific to the annual 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 public works administration includes costs derived by the City’s Public Works Department or other department in relation to the administration and management of the District. County Collection Fee – The cost to the District for the County to collect assessments on the annual secured property tax bills. Alameda County charges 1.7% of the total levy amount. 586 Miscellaneous Costs and Collections/(Credits) Applied to Levy 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 cost estimate 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 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 cost estimate 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 Cost Estimate. 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 District (Direct and Administration) Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Sources, and the Contribution Replenishment (if any). Only those costs related to the improvements identified as conferring special benefits to property within District are levied and collected on the tax roll. The following page shows the cost estimates for Fiscal Year 2022-23 and 2023-24. 587 FY 2022-23 Cost Estimate Projected FY 2023-24 Cost Estimate DISTRICT REVENUES Estimated Assessment Revenues 194,169$ 198,052$ Contributions from Other Revenue Sources 4,500$ 4,950$ Total District Revenues1 198,669$ 203,002$ DISTRICT COSTS Maintenance - Landscape (MCE Base Amount)45,768$ 45,981$ Maintenance - Landscape (MCA Additional)-$ -$ Utilities - Water 73,143$ 76,800$ Utilities - Electricity 2,356$ 2,474$ Miscellaneous Expenses -$ -$ Legal Notices 575$ 592$ District Administration 3,410$ 3,512$ Public Works Administration -$ -$ County Collection Fee 2,850$ 2,936$ Total District Costs 128,102$ 132,295$ MISCELLANEOUS COSTS AND COLLECTIONS/(CREDITS) APPLIED TO LEVY Reserve Collection/(Transfer)-$ 2,097$ Capital Improvement Fund (CIF) Collection/(Transfer)70,567$ 68,611$ Total Miscellaneous Costs and Collections/(Credits) Applied to Levy 70,567$ 70,707$ Balance to Levy 194,169$ 198,052$ Variance Between Estimated Assessment Revenues and Balance to Levy -$ -$ Total Assessment Revenue at Maximum Rate2 194,169$ 198,052$ Variance above/(below) Maximum Assessment Revenue -$ -$ FUND BALANCE INFORMATION Beginning Operating Reserve Fund Balance (est. 7/1/22 and 7/1/23)64,051$ 64,051$ Reserve Fund Adjustments -$ 2,097$ Transfer From/(To) Capital Improvement Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending Operating Reserve Fund Balance (est. 6/30/23 and 6/30/24)64,051$ 66,148$ Beginning CIF Balance (est. 7/1/22 and 7/1/23)3 36,928$ 107,495$ CIF Adjustment 70,567$ 68,610$ Transfer From/(To) Reserve Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending CIF Balance (est. 6/30/23 and 6/30/24)3 107,495$ 176,105$ 1Total District Revenues includes the estimated assessment revenues for each fiscal year and contributions from other revenue sources such as interest earnings, etc. 2The Maximum Assessment Revenue for Fiscal Year (FY) 2023/24 was estimated to be equal to the FY 2022/23 Maximum Assessment Revenues and escalated by 2%. 3The City is planning to utilize the CIF Balance to contribute towards the cost for future fencing projects throughout the District. Table 2: City of Dublin Landscape & Lighting District No. 1986-1 588 Capital Improvement Projects In addition to collecting funds annually for maintenance, funds are also allowed to be collected for capital improvement projects. Capital improvement projects generally include the repair and replacement of public improvements authorized to be maintained by the District. These funds are collected and often accumulated in a separate fund and are not considered to be a part of the regular maintenance of the improvements. Following is a list of capital improvement projects the City plans to address utilizing District funds in the upcoming fiscal year and thereafter. General Improvements: The City has identified the need for additional plantings, as well as sidewalk repairs, which fall outside of the regular maintenance budget for this District. Repairs will be addressed based upon need and available fund balance in the upcoming two-year cycle. Alamo Creek Park and Assessment District - Fence Replacement: The City has identified the need to remove, replace, and/or repair tubular steel fencing throughout the District and around and within Alamo Creek Park. The projects costs associated with Alamo Creek Park fencing is not funded by the District, but is funded by the City’s General Fund. District funding for the project is currently $400,000. 589 PART C ASSESSMENT DISTRICT DIAGRAM The boundaries of the District are shown herein. The lines and dimensions of each parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A reduced copy of the Assessment Diagram is shown on the following page. 590 City of DublinLandscape and Lighting District No. 1986-1Assessment Diagram Prepared by Francisco & Associates, Inc. Willow Dreek D r DO u g h e r t y R d Amad o r V a l l e y B l v d Fall Creek R d 0 650 1,300325 Feet N:\Dublin\FY18-19\Diagrams\LLAD1986-1_Assessment Diagram (SA 04/17/2018) Legend LLAD 1986-1 BoundaryCity Limit Parcel Lines Parcels within LLAD 1986-1 591 PART D METHOD OF APPORTIONMENT OF ASSESSMENTS 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.” 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, rights-of-way, 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 592 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 is enhanced by the presence of well-maintained landscaping near 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. 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. 593 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 that utilizes 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 1.00 EDU. EDU’s are assigned to the other land uses based upon the property’s development status, and type of development (County of Alameda land use code) as shown in the table below. 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 using EDUs. 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 Levy Amount Property Type EDU Factor Single Family Residential (SFR)1.00 per Parcel Multi Family Residential (MFR)0.50 per Unit Commercial 4.00 per Parcel Exempt, Cemeteries, Common Open Space 0.00 per Parcel TABLE 3: ASSESSMENT METHODOLOGY Landscape & Lighting District No. 1986-1 594 Maximum Assessment Rate It is recognized that the cost of maintaining the District improvements increases slightly every year because 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 for each property type shall be increased each fiscal year 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” which is applied to all costs except utilities (water and electricity), plus the actual percentage increase in utility costs (collectively, “Annual Escalation Factor”). In order to implement the District’s Annual Escalation Factor annually, two rates were developed based on the cost estimate that was prepared at the time the property owners approved the annual escalator. The first rate (the “CPI Rate”) was created to encompass the annual District cost increases except for utilities. The second rate (the “Utility Rate”) was created to encompass the annual utility cost increases. The Index is to be applied annually to the prior year’s maximum CPI Rate for each property type to pay for all costs except utilities. The maximum Utility Rate was established to pay for all utility costs for each property type and is to be increased annually by the percentage change in the budgeted amount for utilities as shown in the District’s annual fiscal year Engineer’s Reports. The increase in utility costs shall be calculated by taking the upcoming fiscal year’s budgeted amount for utilities and subtracting the District’s previous highest yearly budgeted amount for utilities. This difference is used to calculate the annual increase in the Utility Rate for each property type. The combination of the maximum CPI Rate and maximum Utility Rate (collectively, “Maximum Assessment Rate”) shall equal the Maximum Assessment Rate for the upcoming fiscal year. Please see Table 3 for details regarding the Maximum Assessment Rate for Fiscal Year 2022-23. The timing of the annual percentage increase of the Index was changed beginning in 2018 and for each year thereafter for administrative purposes, to ensure the City is allowed the time necessary to have all annual documents prepared and approved by the City Council by June of each year, and to meet both County submittal and statutory requirements. Each fiscal year starting in 2018, the City shall identify the annual percentage difference in the Index between the most recent calendar year and that of the prior calendar year; more specifically, the annual percentage change used to escalate the prior year’s assessment rates for Fiscal Year 2022-23 was determined based on the difference using the annual amount for calendar years 2021 and 2020. 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 index as approved by the City Council for determining fluctuations in the cost of living. The following table shows the Maximum Assessment Rates allowable for Fiscal Year 2022-23. 595 If the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the ensuing fiscal year’s assessment without applying the adjustment formula to the amount levied. If the cost estimate and assessments for the 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. CPI for 2020 Calendar Year1 292.601 CPI for 2021 Calendar Year1 304.602 % Change in CPI - Increase 4.10% FY 2021/22 Maximum Rate per EDU - CPI Rate $163.61 FY 2022/23 Maximum Rate per EDU - CPI Rate $170.32 Prior Year Maximum Utility Budget 2 $83,200 Utility Budget for FY 2022/23 $75,499 % Change in Utility Rate - Increase3 0.000% FY 2021/22 Maximum Rate per EDU - Utility Rate $127.71 FY 2022/23 Maximum Rate per EDU - Utility Rate $127.71 FY 2021/22 Maximum Assessment Rate per EDU $291.32 FY 2022/23 Maximum Assessment Rate per EDU4 $298.03 1 CPI is based off of the All Urban Wage Earners and Clerical Workers. 2 The FY 2017/18 Budget Amount for Utilities was the previous highest amount budgeted for utility costs. 3 Equals the % difference between the FY 2021/22 and FY 2022/23 Maximum Utility Rate. If the Utility Budget does not increase, no increase will be realized. 4 Equals the FY 2022/23 Maximum CPI Rate + Maximum Utility Rate. TABLE 3: MAXIMUM ASSESSMENT RATE Landscape & Lighting District No. 1986-1 596 PART E 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 on file under separate cover with the City Clerk. Furthermore, 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 2022-23. 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. 597 Landscape & Lighting District No. 1997-1 Fiscal Year 2022-23 Final Engineer’s Report June 21, 2022 Attachment 6 598 Table of Contents Page No. Certificate ......................................................................................... ii Section I - Introduction ..................................................................... 1 Section II – Engineer’s Report ......................................................... 3 Part A – Plans and Specifications ......................................... 5 Part B – Estimate of Costs .................................................... 7 Part C – Assessment District Diagram ................................ 11 Part D – Method of Apportionment of Assessments ............ 13 Part E - Assessment Roll .................................................... 19 599 ENGINEER'S REPORT CITY OF DUBLIN LANDSCAPE AND LIGHTING DISTRICT NO. 1997-1 FISCAL YEAR 2022-23 The undersigned, acting on behalf of Francisco & Associates respectfully submits the enclosed Engineer's Report as directed by the Dublin City Council pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, provisions of the Landscaping and Lighting Act of 1972 and Section 22500 et al of the California Streets and Highways Code. The undersigned certifies that he is a Professional Engineer, registered in the State of California. Dated: May 18, 2022 By: Eduardo Espinoza, P.E. RCE # 83709 600 SECTION I INTRODUCTION The City of Dublin (“City”) levies and collects special assessments on parcels within the City of Dublin Landscape and Lighting District No. 1997-1 (“District”) to maintain the landscaping and irrigation improvements within the Santa Rita area. The assessments and method 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. General Description of the District 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 422 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 within this report. A reduced copy of the Assessment Diagram showing the exterior boundaries of the District is provided in Part C of this Report. Compliance with the California Constitution 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 Proposition 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. 601 Summary of District A summary of the assessments to be levied in Fiscal Year 2022-23 for each property type is shown in the table below. Development/Property Type Assessment Rate California Creekside Single ‐ Fam ily Residential (SFR)$128.52 per Parcel California Brookside Multi ‐ Family Residential (MFR)$55.69 per Unit Summer Glen ‐ Richmond American (North) Lots $112.54 per Parcel Summer Glen ‐ Richmond American (South) Lots $123.85 per Parcel Summer Glen ‐ Kaufman & Broad Lots $172.36 per Parcel Summer Glen ‐ Pulte Lots $216.24 per Parcel Dublin Greene Tract 7084 Single Family Residential $136.13 per Parcel Dublin Greene Tract 7149 Single Family Residential $102.50 per Parcel Dublin Greene Tract 7149 Condominiums $53.43 per Unit Other Parcels Including Retail, Office, and Industrial1 $903.85 per Acre 1 Other Parcels includes all other land uses including commercial, retail, office, industrial, and all other parcels that do not fall into one of the developments/property types referenced above. TABLE 1: SUMMARY OF PROPOSED ASSESSMENTS Landscape & Lighting District No. 1997-1 602 SECTION II ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE CITY OF DUBLIN LANDSCAPE AND LIGHTING DISTRICT NO. 1997-1 FISCAL YEAR 2022-23 Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), and in accordance with the Resolution of Intention, adopted by the City Council of the City of Dublin on May 17, 2022, I, Eduardo Espinoza, the duly appointed Engineer of Work, Assessment Engineer for the City of Dublin Landscape and Lighting District No. 1997-1 (the “District”) submit the following Report, consisting of Section I (Introduction), and this, Section II (Engineer’s Report), which consists of five (5) parts as follows: PART A: PLANS AND SPECIFICATIONS This part describes the improvements maintained by the District. Plans and specifications for the improvements are on file in the Office of the Director of Public Works of the City of Dublin and are incorporated herein by reference. PART B: ESTIMATE OF COST This part contains an estimate of the cost of the proposed improvements to be maintained for Fiscal Year 2022-23, including incidental costs and expenses in connection therewith. The estimate is attached hereto and is on file in the Office of the Director of Public Works of the City of Dublin. PART C: ASSESSMENT DISTRICT DIAGRAM This part incorporates a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District and the lines and dimensions of each lot or parcel of land within the District. This Diagram has been prepared by the Engineer of Work and is on file in the Office of the Director of Public Works of the City of Dublin. 603 The lines and dimension of each lot or parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year when this Report was prepared. The Assessor’s maps and records are incorporated by reference herein and made a part of this Report. PART D: METHOD OF APPORTIONMENT OF ASSESSMENTS This part describes the method of apportionment of assessments, based upon each parcel’s land use classification within the District in proportion to the estimated special benefits to be received. PART E: ASSESSMENT ROLL This part contains an assessment of the estimated cost of the improvements to be apportioned to each benefited parcel of land within the District. The Assessment Roll is filed in the Office of the City Clerk of the City of Dublin and is incorporated in this Report. The list is keyed to the records of the Alameda County Assessor, which are incorporated herein by reference. 604 PART A PLANS AND SPECIFICATIONS 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 I-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, 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 605 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. 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 Public Works Department and are made a part of this report by reference. 606 PART B ESTIMATE OF COSTS All landscaping and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed cost estimate for the District is shown on a following page herein. 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 cost estimates are also shown for the next two (2) fiscal years. The following describes the general services and costs shown in the cost estimate. District Costs 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 District Costs defined above. Legal Notices – The cost of legal notices includes costs associated with preparation and publishing of any, and all required legal notices associated with the District. District Administration – The costs of contracting with professionals to provide services specific to the annual 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 public works administration includes costs derived by the City’s Public Works Department or other department in relation to the administration and management of the District. County Collection Fee – The cost to the District for the County to collect assessments on the annual secured property tax bills. Alameda County charges 1.7% of the total levy amount. 607 Miscellaneous Costs and Collections/(Credits) Applied to Levy 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 cost estimate 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 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 cost estimate 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 Cost estimate. 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 District (Direct and Administration) Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Sources, and the Contribution Replenishment (if any). Only those costs related to the improvements identified as conferring special benefits to property within the District are levied and collected on the tax roll. The following page shows the cost estimates for Fiscal Year 2022-23 and 2023-24. 608 FY 2022-23 Cost Estimate Projected FY 2023-24 Cost Estimate DISTRICT REVENUES Estimated Assessment Revenues 380,680$ 388,294$ Contributions from Other Revenue Sources 10,000$ 11,000$ Total District Revenues1 390,680$ 399,294$ DISTRICT COSTS Maintenance - Landscape (MCE Base Amount)209,753$ 213,377$ Maintenance - Landscape (MCE Additional)-$ -$ Utilities - Water 115,920$ 121,716$ Utilities - Electricity 655$ 688$ Miscellaneous Expenses 14,000$ 14,000$ Legal Notices 575$ 592$ District Administration 3,410$ 3,512$ Public Works Administration -$ -$ County Collection Fee 7,000$ 7,210$ Total District Costs 351,313$ 361,095$ MISCELLANEOUS COSTS AND COLLECTIONS/(CREDITS) APPLIED TO LEVY Reserve Collection/(Transfer)-$ 4,891$ Capital Improvement Fund (CIF) Collection/(Transfer)39,367$ 33,308$ Total Miscellaneous Costs and Collections/(Credits) Applied to Levy 39,367$ 38,199$ Balance to Levy 380,680$ 388,294$ Variance Between Estimated Assessment Revenues and Balance to Levy -$ -$ Total Assessment Revenue at Maximum Rate2 668,937$ 682,315$ Variance above/(below) Maximum Assessment Revenue (288,257)$ (294,022)$ FUND BALANCE INFORMATION Beginning Operating Reserve Fund Balance (est. 7/1/22 and 7/1/23)175,657$ 175,657$ Reserve Fund Adjustment -$ 4,891$ Transfer From/(To) Capital Improvement Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending Operating Reserve Fund Balance (est. 6/30/23 and 6/30/24)175,657$ 180,548$ Beginning CIF Balance (est. 7/1/22 and 7/1/23)1,042,148$ 886,514$ CIF Adjustment 39,367$ 33,308$ Transfer Out For CIP (195,000)$ -$ Transfer From/(To) Reserve Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending CIF Balance (est. 6/30/23 and 6/30/24)886,514$ 919,822$ 1Total District Revenues includes the estimated assessment revenues for each fiscal year and contributions from other revenue sources such as interest earnings, etc. 2The Maximum Assessment Revenue for Fiscal Year (FY) 2023/24 was estimated to be equal to the FY 2022/23 Maximum Assessment Revenues and escalated by 2%. Table 2: City of Dublin Landscape & Lighting District No. 1997-1 609 Capital Improvement Projects In addition to collecting funds annually for maintenance, funds are also allowed to be collected for capital improvement projects. Capital improvement projects generally include the repair and replacement of public improvements authorized to be maintained by the District. These funds are collected and often accumulated in a separate fund and are not considered to be a part of the regular maintenance of the improvements. Following is a list of capital improvement projects the City plans to address utilizing District funds in the upcoming fiscal year and thereafter. General Improvements: The City has identified the need for minor sound wall repairs, as well as pavement/trail repairs at Tassajara Creek, which are outside of the scope of the regular maintenance budget for this District. Repairs will be addressed based upon the need and available fund balance in the upcoming two- year cycle. Persimmon Drive Asphalt Path Rehabilitation: The City has identified the need for rehabilitation of the asphalt trail adjacent to Persimmon Drive. 610 PART C ASSESSMENT DISTRICT DIAGRAM The boundaries of the District are shown herein. The lines and dimensions of each parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A reduced copy of the Assessment Diagram is shown on the following page. 611 City of DublinLandscape and Lighting District No. 1997-1Assessment Diagram Prepared by Francisco & Associates, Inc. N:\Dublin\FY18-19\Diagrams\LLAD1997-1_Assessment Diagram (SA 04/17/2018) Legend LLAD 1997-1 BoundaryCity Limit Parcel Lines Parcels within LLAD 1997-1 Dublin Blvd Central Pkwy Ha c i e n d a D r Ta s s a j a r a R d Ar n o l d R d Gleason Dr 600 0 600 1,200300 Feet 612 PART D METHOD OF APPORTIONMENT OF ASSESSMENTS 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.” 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, rights-of-way, 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 613 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. 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. 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: 614 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. Assessment Methodology The initial Engineer’s Report provided 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 anticipated at the time of formation for build-out of all property within the District. The cost of the improvements was 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, retail, office, industrial, and all other parcel classifications not referenced herein’ 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 development. 5. If the initial 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 budgeted 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), the assessment shall be reduced proportionately to reflect the reduced cost of improvements in that year. 615 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. 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 2022-23. Maximum Assessment Rate It is recognized that the cost of maintaining the District improvements increases slightly every year because 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. The maximum assessment amount for each development/property type shall be increased each fiscal year 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” which is applied to all costs except utilities (water and electricity), plus the actual percentage increase in utility costs (collectively, “Annual Escalation Factor”). In order to implement the District’s Annual Escalation Factor annually, two rates were developed based on the cost estimate that was prepared at the time the property owners approved the annual escalator. The first rate (the “CPI Rate”) was created to encompass the annual District cost increases except for utilities. The second rate (the “Utility Rate”) was created to encompass the annual utility cost increases. The Index is to be applied annually to the prior year’s maximum CPI Rate for each development/property type to pay for all costs except utilities. The maximum Utility Rate was established to pay for all utility costs for each development/property type and is to be increased annually by the percentage change in the budgeted amount for utilities as shown in the annual District’s fiscal year Engineer’s Reports. The increase in utility costs shall be calculated by taking the upcoming fiscal year’s budgeted amount for utilities and subtracting the District’s previous highest yearly budgeted amount for utilities. This difference is used to calculate the annual increase in the Utility Rate for each development/property type. The combination of the maximum CPI Rate and maximum Utility Rate (collectively, “Maximum Assessment Rate”) shall equal the Maximum Assessment Rate for the upcoming fiscal year. Please see Table 3 for details regarding the Maximum Assessment Rate for Fiscal Year 2022-23. The timing of the annual percentage increase of the Index was changed beginning in 2018 and for each year thereafter for administrative purposes, to ensure the City is 616 allowed the time necessary to have all annual documents prepared and approved by the City Council by June of each year, and to meet both County submittal and statutory requirements. Each fiscal year starting in 2018, the City shall identify the annual percentage difference in the Index between the most recent calendar year and that of the prior calendar year; more specifically, the annual percentage change used to escalate the prior year’s assessment rates for Fiscal Year 2022-23 was determined based on the difference using the annual amount for calendar years 2021 and 2020. 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 index as approved by the City Council for determining fluctuations in the cost of living. The following table shows the Maximum Assessment Rates allowable for Fiscal Year 2022-23. If the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the ensuing fiscal year’s assessment without applying the adjustment formula to the amount levied. If the cost estimate and CPI for 2020 Calendar Year1 292.601 CPI for 2021 Calendar Year1 304.602 % Change in CPI - Increase 4.10% FY 2021/22 Maximum Rate per Acre - CPI Rate $1,257.66 FY 2022/23 Maximum Rate per Acre - CPI Rate $1,309.24 Prior Year Maximum Utility Budget 2 $114,179 Utility Budget for FY 2022/23 $116,575 % Change in Utilities Rate - Increase3 2.098% FY 2021/22 Maximum Rate per Acre - Utility Rate $273.27 FY 2022/23 Maximum Rate per Acre - Utility Rate $279.01 FY 2021/22 Maximum Assessment Rate per Acre $1,530.93 FY 2022/23 Maximum Assessment Rate per Acre4 $1,588.25 1 CPI is based off of the All Urban Wage Earners and Clerical Workers. 2 The FY 2014/15 Budget Amount for Utilities was the previous highest amount budgeted for utility costs. 3 Equals the % difference between the Prior Year Utility Budget and the Current Year Utility Budget. If the Utility Budget does not increase, no increase will be realized. 4 Equals the FY 2022/23 Maximum CPI Rate + Maximum Utility Rate. TABLE 3: MAXIMUM ASSESSMENT RATE Landscape & Lighting District No. 1997-1 617 assessments for the 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. 618 PART E 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 on file under separate cover with the City Clerk. Furthermore, 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 2022-23. 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. 619 Street Lighting District No. 1999-1 Fiscal Year 2022-23 Final Engineer’s Report June 21, 2022 Attachment 7 620 Table of Contents Page No. Certificate ......................................................................................... ii Section I - Introduction ..................................................................... 1 Section II – Engineer’s Report ......................................................... 3 Part A – Plans and Specifications ......................................... 5 Part B – Estimate of Costs .................................................... 7 Part C – Assessment District Diagram ................................ 11 Part D – Method of Apportionment of Assessments ............ 13 Part E - Assessment Roll .................................................... 18 621 ENGINEER'S REPORT CITY OF DUBLIN STREET LIGHTING MAINTENANCE DISTRICT NO. 1999-1 FISCAL YEAR 2022-23 The undersigned, acting on behalf of Francisco & Associates respectfully submits the enclosed Engineer's Report as directed by the Dublin City Council pursuant to the provisions of Article XIIID, Section 4 of the California Constitution, provisions of the Landscaping and Lighting Act of 1972 and Section 22500 et al of the California Streets and Highways Code. The undersigned certifies that he is a Professional Engineer, registered in the State of California. Dated: May 18, 2022 By: Eduardo Espinoza, P.E. RCE # 83709 622 SECTION I INTRODUCTION The City of Dublin (“City”) levies and collects special assessments on parcels within the City of Dublin Street Lighting Maintenance District No. 1999‐1 (“District”) to maintain the public street lighting improvements within the District. The assessments and method 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. General Description of the District 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 (excluding the golf course). Tract 7067, which is the Clifton Park development off Mountain Rose Place in the western hills of the City 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 District was that a special decorative lighting fixture was designed and installed throughout the area to create a community element as part of the development. A Diagram showing the exterior boundaries of the District is provided within this Report. A reduced copy of the Assessment Diagram showing the exterior boundaries of the District is provided in Part C of this Report. Compliance with the California Constitution 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. 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. 623 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. Summary of District A summary of the assessments to be levied in Fiscal Year 2022-23 for each property type is shown in the table below. Property Type EDU Factor Assessment Rate Single Family Residential (SFR)1.00 per Parcel $38.03 per P arcel Commercial 5.50 per Acre $209.15 per Acre Exempt, Cemeteries, Common Open Space 0.00 per Parcel $0.00 per Parcel TABLE 1: SUMMARY OF PROPOSED ASSESSMENTS Street Lighting District No. 1999-1 624 SECTION II ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE CITY OF DUBLIN STREET LIGHTING MAINTENANCE DISTRICT NO. 1999-1 FISCAL YEAR 2022-23 Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), and in accordance with the Resolution of Intention, adopted by the City Council of the City of Dublin on May 17, 2022, I, Eduardo Espinoza, the duly appointed Engineer of Work, Assessment Engineer for the City of Dublin Street Lighting Maintenance District No. 1999-1 (the “District”) submit the following Report, consisting of Section I (Introduction), and this Section II (Engineer’s Report), which consists of five (5) parts as follows: PART A: PLANS AND SPECIFICATIONS This part describes the improvements maintained by the District. Plans and specifications for the improvements are on file in the Office of the Director of Public Works of the City of Dublin and are incorporated herein by reference. PART B: ESTIMATE OF COST This part contains an estimate of the cost of the proposed improvements to be maintained for Fiscal Year 2022-23, including incidental costs and expenses in connection therewith. The estimate is attached hereto and is on file in the Office of the Director of Public Works of the City of Dublin. PART C: ASSESSMENT DISTRICT DIAGRAM This part incorporates a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District and the lines and dimensions of each lot or parcel of land within the District. This Diagram has been prepared by the Engineer of Work and is on file in the Office of the Director of Public Works of the City of Dublin. 625 The lines and dimension of each lot or parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year when this Report was prepared. The Assessor’s maps and records are incorporated by reference herein and made a part of this Report. PART D: METHOD OF APPORTIONMENT OF ASSESSMENTS This part describes the method of apportionment of assessments, based upon each parcel’s land use classification within the District in proportion to the estimated special benefits to be received. PART E: ASSESSMENT ROLL This part contains an assessment of the estimated cost of the improvements to be apportioned to each benefited parcel of land within the District. The Assessment Roll is filed in the Office of the City Clerk of the City of Dublin and is incorporated in this Report. The list is keyed to the records of the Alameda County Assessor, which are incorporated herein by reference. 626 PART A PLANS AND SPECIFICATIONS The District provides for the continued installation, maintenance, and servicing of street lighting improvements within the public rights-of-way 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 streetlights age, the number of repairs are increasing. In addition, a portion of the funds collected from the annual assessments of the 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 CIF 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. These funds are not considered part of the regular maintenance of the improvements or a part of the Operating Reserve Fund. In Fiscal Year 2012-13, 321 streetlights in the District were retrofitted with new light emitting diode (LED) fixtures. The total construction cost for these improvements was $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, 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, 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, 627 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. 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 Public Works Department and are made a part of this report by reference. 628 PART B ESTIMATE OF COSTS All public streetlights and other eligible improvements within the District are maintained and serviced on a regular basis. The proposed cost estimate for the District is shown on a following page herein. 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 cost estimates are also shown for the next two (2) fiscal years. The following describes the general services and costs shown in the cost estimate. District Costs Operating Supplies – The cost of supplies for 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 both large scheduled and unscheduled, but necessary 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 streetlight electrical energy use, including miscellaneous utility charges. Miscellaneous Expenses – Costs that cannot easily be categorized into any of the other District Costs defined above. Legal Notices – The cost of legal notices includes costs associated with preparation and publishing of any, and all required legal notices associated with the District. District Administration – The costs of contracting with professionals to provide services specific to the annual 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 public works administration includes costs derived by the City’s Public Works Department or other department in relation to the administration and management of the District. 629 County Collection Fee – The cost to the District for the County to collect assessments on the annual secured property tax bills. Alameda County charges 1.7% of the total levy amount. Miscellaneous Costs and Collections/(Credits) Applied to Levy 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 cost estimate 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 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 cost estimate 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 cost estimate. 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 District (Direct and Administration) Costs, Reserve Fund Contributions or Transfers, Contributions from Other Revenue Sources, and the Contribution Replenishment (if any). Only those costs related to the improvements identified as conferring special benefits to property are levied and collected on the tax roll. The following page shows the cost estimates for Fiscal Year 2022-23 and 2023-24. 630 FY 2022-23 Cost Estimate Projected FY 2023-24 Cost Estimate DISTRICT REVENUES Estimated Assessment Revenues 324,437$ 330,926$ Contributions from Other Revenue Sources 12,500$ 13,750$ Total District Revenues1 336,937$ 344,676$ DISTRICT COSTS Operating Supplies 10,000$ 10,000$ Contract with Alameda County 88,786$ 93,225$ California Street Light Association 400$ 400$ Utilities - Electricity 152,880$ 160,524$ Miscellaneous Expenses -$ -$ Legal Notices 575$ 592$ District Administration 3,500$ 3,605$ Public Works Administration -$ -$ County Collection Fee 5,900$ 6,077$ Total District Costs 262,041$ 274,423$ MISCELLANEOUS COSTS AND COLLECTIONS/(CREDITS) APPLIED TO LEVY Reserve Fund Collection/(Transfer)-$ 6,191$ Capital Improvement Fund (CIF) Collection/(Transfer)74,896$ 64,062$ Total Miscellaneous Costs and Collections/(Credits) Applied to Levy 74,896$ 70,253$ Balance to Levy 324,437$ 330,926$ Variance Between Estimated Assessment Revenues and Balance to Levy -$ -$ Total Assessment Revenue at Maximum Rate2 547,297$ 558,243$ Variance above/(below) Maximum Assessment Revenue (222,860)$ (227,317)$ FUND BALANCE INFORMATION Beginning Operating Reserve Fund Balance (est. 7/1/22 and 7/1/23)131,021$ 131,021$ Reserve Fund Adjustment -$ 6,191$ Transfer From/(To) Capital Improvement Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending Operating Reserve Fund Balance (est. 6/30/23 and 6/30/24)131,021$ 137,212$ Beginning CIF Balance (est. 7/1/22 and 7/1/23)334,170$ 367,065$ CIF Adjustment 74,896$ 64,062$ LED Conversion Project -$ -$ Transfer Out For CIP (42,000)$ (42,000)$ Transfer From/(To) Reserve Fund -$ -$ Prior/Penalties/Public Damage -$ -$ Interest -$ -$ Ending CIF Balance (est. 6/30/23 and 6/30/24)367,065$ 389,128$ 1Total District Revenues includes the estimated assessment revenues for each fiscal year and contributions from other revenue sources such as interest earnings, etc. 2The Maximum Assessment Revenue for Fiscal Year (FY) 2023/24 was estimated to be equal to the FY 2022/23 Maximum Assessment Revenues and escalated by 2%. Table 2: City of Dublin Street Lighting District No. 1999-1 631 Capital Improvement Projects In addition to collecting funds annually for maintenance, funds are also allowed to be collected for capital improvement projects. Capital improvement projects generally include the repair and replacement of public improvements authorized to be maintained by the District. These funds are collected and often accumulated in a separate fund and are not considered to be a part of the regular maintenance of the improvements. Following is a list of capital improvement projects the City plans to address utilizing District funds in the upcoming fiscal year and thereafter. Light Pole Painting: The City has identified the need for regular painting of light poles within the District. Citywide Energy Improvements: The City has identified the need to upgrade streetlights to energy-efficient light emitting diode (LED) technology. District funding will cover the cost of LED streetlight upgrades within the District. 632 PART C ASSESSMENT DISTRICT DIAGRAM The boundaries of the District are shown herein. The lines and dimensions of each parcel within the District are those lines and dimensions shown on the maps of the Alameda County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report. A reduced copy of the Assessment Diagram is shown on the following page. 633 City of DublinStreet Lighting District No. 1999-1Assessment Diagram Prepared by Francisco & Associates, Inc. ¯ N:\Dublin\FY21-22\Diagrams\LLAD1999-1_Assessment Diagram (AH 03/25/2021) 0 2,000 4,0001,000 Feet 0 200 400 600100Feet Legend ! ! ! ! ! LLAD 1999-1 BoundaryCity Limit Parcel Lines Parcels within LLAD 1999-1 Mountain Ga l w a y C t I n s p i r a t i o n C i r C l i f d e n C t Rise Pl Tract 7067 Dublin Blvd Central P k w y Fa l l o n R d Fa l l o n R d Gleason Dr Po i t a n o P k w y 634 PART D METHOD OF APPORTIONMENT OF ASSESSMENTS 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.” 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, rights-of-way, 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 635 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 public lighting in close proximity to those properties. The special benefits of street lighting and other public lighting facilities are for the convenience, safety, and security of property, improvements, and goods. Specifically: 1) Enhanced deterrence of crime and to aid 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 acts 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 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 636 an adjacent larger parcel. The adjacent larger parcel, of which these "sliver" parcels are a part, are assessed at the residential rate. 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 that utilizes Equivalent Dwelling Units (EDU). The 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 1.00 EDU since it represented more than 85% 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. 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., 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 units. 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 for 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. In addition, institutional property, such as schools and other types of public property are identified within this category. Property Type EDU Factor Single Family Residential (SFR)1.00 per Parcel Commercial 5.50 per Acre Exempt, Cemeteries, Common Open Space 0.00 per Parcel TABLE 3: ASSESSMENT METHODOLOGY Street Lighting District No. 1999-1 637 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 Maximum Assessment Rate It is recognized that the cost of maintaining the District improvements increases slightly every year because 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 for each property type shall be increased each fiscal year 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” which is applied to all costs except utilities (water and electricity), plus the actual percentage increase in utility costs (collectively, “Annual Escalation Factor”). In order to implement the District’s Annual Escalation Factor annually, two rates were developed based on the cost estimate that was prepared at the time the property owners approved the annual escalator. The first rate (the “CPI Rate”) was created to encompass the annual District cost increases except for utilities. The second rate (the “Utility Rate”) was created to encompass the annual utility cost increases. The Index is to be applied annually to the prior year’s maximum CPI Rate for each property type to pay for all costs except utilities. The maximum Utility Rate was established to pay for all utility costs for each property type and is to be increased annually by the percentage change in the budgeted amount for utilities as shown in the annual District’s fiscal year Engineer’s Reports. The increase in utility costs shall be calculated by taking the upcoming fiscal year’s budgeted amount for utilities and subtracting the District’s previous highest yearly budgeted amount for utilities. This difference is used to calculate the annual increase in the Utility Rate for each property type. The combination of the maximum CPI Rate and maximum Utility Rate (collectively, “Maximum Assessment Rate”) shall equal the Maximum Assessment Rate for the upcoming fiscal year. Please see Table 3 for details regarding the Maximum Assessment Rate for Fiscal Year 2022-23. The timing of the annual percentage increase of the Index was changed beginning in 2018 and for each year thereafter for administrative purposes, to ensure the City is 638 allowed the time necessary to have all annual documents prepared and approved by the City Council by June of each year, and to meet both County submittal and statutory requirements. Each fiscal year starting in 2018, the City shall identify the annual percentage difference in the Index between the most recent calendar year and that of the prior calendar year; more specifically, the annual percentage change used to escalate the prior year’s assessment rates for Fiscal Year 2022-23 was determined based on the difference using the annual amount for calendar years 2021 and 2020. 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 index as approved by the City Council for determining fluctuations in the cost of living. The following table shows the Maximum Assessment Rates allowable for Fiscal Year 2022-23. If the City Council determines that an inflation adjustment is not required for a given fiscal year, the City Council may authorize the ensuing fiscal year’s assessment without applying the adjustment formula to the amount levied. If the cost estimate and assessments for the 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. CPI for 2020 Calendar Year1 292.601 CPI for 2021 Calendar Year1 304.602 % Change in CPI - Increase 4.10% FY 2021/22 Maximum Rate per EDU - CPI Rate $39.66 FY 2022/23 Maximum Rate per EDU - CPI Rate $41.28 Prior Year Maximum Utility Budget 2 $183,600 Utility Budget for FY 2022/23 $152,880 % Change in Utility Rate - Increase3 0.000% FY 2021/22 Maximum Rate per EDU - Utility Rate $22.85 FY 2022/23 Maximum Rate per EDU - Utility Rate $22.85 FY 2021/22 Maximum Assessment Rate per EDU $62.51 FY 2022/23 Maximum Assessment Rate per EDU4 $64.14 1 CPI is based off of the All Urban Wage Earners and Clerical Workers. 2 The FY 2021/22 Budget Amount for Utilities was the previous highest amount budgeted for utility costs. 3 Equals the % difference between the FY 2021/22 and FY 2022/23 Maximum Utility Rate. If the Utility Budget does not increase, no increase will be realized. TABLE 4: MAXIMUM ASSESSMENT RATE Street Lighting District No. 1999-1 639 PART E 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 on file under separate cover with the City Clerk. Furthermore, 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 2022-23. 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. 640 6.2 Public Hearing Assessment Districts City Council June 21, 2022 641 Background •May 17, 2022 –City Council set the public hearing for June 21, 2022. •Notification -Staff posted Public Notices at City Hall. •Public Notice was published in The East Bay Times. •Website –The Public Notice and copies of the fiscal year 2022- 2023 Engineer’s Reports were posted on the City website. •Postcards were sent to property owners in Districts 1983-2 and 1986-1. •Public Response –None 642 Citywide Street Lighting Maintenance District No. 1983-1 •Funds maintenance and utility costs for Dublin’s public streetlights. •Proposition 218: Assessments capped at $19.34 per single family residence and $106.37 per acre of commercial or industrial use. •Fiscal year budget projects an increase in reserves of $14,996, which includes estimated interest and capital improvement funds. 643 Landscape Maintenance District No. 1983-2 •Maintains Tract 4719 landscaping adjacent to Stagecoach Road. •FY22-23 budget proposes a 9% increase to a rate of $448.60 per single family home and $75.87 for apartments and condominiums. The existing capital improvement fund balance and the additional revenue from the rate increase will fund general improvements, such as retaining wall repairs, additional irrigation and planting, and v-ditch repairs. •Maximum assessments are $487.79 and $82.48 •Fiscal year budget projects an increase in reserves of $33,775 which includes estimated interest and capital improvement funds. 644 Landscape Maintenance District No. 1986-1 •Maintains landscaping, fences, and walls in the residential area west of Dougherty Road and north of Amador Valley Boulevard. •FY22-23 budget proposes a 21% increase to bring assessment rates to the maximum. The existing capital improvement fund balance and additional revenue from the rate increase will fund current and future capital improvement projects, as well as other general improvements. •Maximum assessments are $298.03 per single family home, $149.02 for apartments, and $1,192.10 for commercial lots. •Fiscal year budget projects an increase in reserves of $70,567, which includes estimated interest and capital improvement funds. 645 Landscape Maintenance District No. 1997-1 •Maintains landscaping in the Santa Rita development, bounded by I- 580, Tassajara Road, Gleason Drive and Arnold Road. •FY22-23 budget proposes no increase with assessments remaining at $903.85 per acre. Assessment varies between $54 to $216 per residential unit, depending on residential density. •Maximum assessments are $1,588.25 per acre. •Fiscal year budget projects a decrease in reserves of $155,633, which includes estimated interest and capital improvement funding for the Persimmon Drive Asphalt Path Rehabilitation Project. 646 Street Lighting Maintenance District No. 1999-1 •Maintains street lighting, including decorative light fixtures, in Dublin Ranch, Fallon Village, Jordan Ranch, and Clifden Park developments. •FY22-23 budget proposes no increase with assessments remaining at $38.03 per dwelling unit and $209.15 per acre for commercial use. •Maximum assessments are $64.14 per dwelling unit and $352.75 per acre. •Fiscal year budget projects an increase in reserves of $32,896, which includes estimated interest and capital improvement funds. •Two capital improvement projects are identified for FY2022/2023, and funded by the capital improvement funds: –Light Pole Painting –Upgrade to Energy-Efficient Streetlights 647 Recommendation That the City Council: •Open the Public Hearing for all five Assessment Districts, take testimony, close the Public Hearing, and Deliberate; •Adopt the Resolution for all five Districts: –Approving the Engineer’s Report –Confirming Diagram and Assessment –Ordering the Levy of Assessment 648