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06-25-2019 CC Rpt 18COUNCIL AGENDA STAFF REPORT Chino Hill TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JUNE 25, 2019 MEMBERS FROM: CITY MANAGER ITEM NO:18 SUBJECT: RESOLUTION CONFIRMING THE ENGINEERS ANNUAL LEVY REPORT FOR CHINO HILLS VELLANO LANDSCAPE AND LIGHTING DISTRICT RECOMMENDATION: Adopt a resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ACTING IN ITS CAPACITY AS THE GOVERNING BODY OF THE CHINO HILLS VELLANO LANDSCAPING AND LIGHTING DISTRICT TO CONFIRM THE ANNUAL ASSESSMENTS AND ORDER THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE CHINO HILLS VELLANO LANDSCAPING AND LIGHTING DISTRICT, PURSUANT TO PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE, SECTION 22500 ET SEQ.). BACKGROUND/ANALYSIS: The Chino Hills Vellano Landscape and Lighting District was formed to provide street lighting, parks, open space, landscaping maintenance, and improvements throughout the District. Annually, the City Council must hold a public hearing to review the cost of operation for landscape and lighting as presented in the Engineer's Annual Levy Report and to set the annual assessments on properties within the District. On February 12, 2019, City Council adopted Resolution No. 2019R-004 ordering the Engineer's Annual Levy Report for FY 2019/20. On May 28, 2019, the City Council set June 25, 2019, as the date for the public hearing. The Engineer's Annual Levy Report for FY 2019/20, with proposed assessments and District map, has been on file and available for public review since May 28, 2019. ENVIRONMENTAL (CEQA) REVIEW: The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA pursuant to Title 14 California Code of Regulations § 15301 (h) as a Class 1 Categorical Exemption (Existing Facilities). The project involves maintenance of existing landscape and lighting and is not anticipated to have any significant impacts with regard to traffic, noise, air quality, or water quality. FISCAL IMPACT: The proposed Fiscal Year 2019/20 budget for the District is $351,175.50 and the proposed assessments for Fiscal Year 2019/20 are projected to generate $235,988.74. The remaining $115,186.76 will come from reserve fund contributions. 279/328 REVIEWED BY OTHERS: This item has been reviewed by the Finance Director. Respectfully Submitted, Recommended By: Benjamin Montgorrf ry Nadeem Majaj City Manager Attachments Resolution Engineer's Reports - Vellano District 4 P.E., Director of Public Works 280/328 RESOLUTION NO. 2019R- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ACTING IN ITS CAPACITY AS THE GOVERNING BODY OF THE CHINO HILLS VELLANO LANDSCAPING AND LIGHTING DISTRICT TO CONFIRM THE ANNUAL ASESSMENTS AND ORDER THE LEVYAND COLLECTION OF ASSESSMENTS FOR THE CHINO HILLS VELLANO LANDSCAPING AND LIGHTING DISTRICT, PURSUANT TO PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE, SECTION 22500 ET SEQ.) WHEREAS, on February 12, 2019, the City Council of the City of Chino Hills adopted Resolution No. 2019R-004 ordering an Engineer's Report for the confirmation of annual assessments for street lighting; open space, parks, landscaping, fencing, and irrigation maintenance, and other similar appurtenances along with the addition of new capital facilities and improvements of similar nature as provided in the Engineer's Report; and WHEREAS, the City Council has been informed that the Engineer's Report described in that Resolution and setting for the proposed annual assessments for fiscal year 2019/20 is on file with the City Clerk; and WHEREAS, on May 28, 2019, the City Council set June 25, 2019, at 7:00 p.m. in the Council Chambers of City Hall, 14000 City Center Drive, Chino Hills, as the day, hour and place fixed when and where any and all persons having any objections to the confirmation of the assessments for fiscal year 2019/20 could appear before the City Council to protest such confirmation; and WHEREAS, the City Clerk did cause notice of the Public Hearing to be published in the Chino Champion, a newspaper of general circulation in the City of Chino Hills, one time, pursuant to Government Code Section 6061, not less than ten (10) days prior to the date of said Hearing; and WHEREAS, this City and its legal counsel have reviewed Proposition 218 and found that all proposed assessments comply with applicable provisions of Article XIIIC and XIIID of the California State Constitution. Page 1 of 4 281/328 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HILLS, ACTING IN ITS CAPACITY AS THE GOVERNING BODY OF CHINO HILLS VELLANO LANDSCAPING AND LIGHTING DISTRICT DOES HEREBY RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS: SECTION 1. That the Engineer's Report which has been filed with the City Clerk for the annual assessments for the proposed Chino Hills Vellano Landscaping and Lighting District is hereby accepted. SECTION 2. That it is in the public interest and it is the intention of the City Council to confirm the assessments in the Chino Hills Vellano Landscaping and Lighting District pursuant to the Landscaping and Lighting Act of 1972, in order to provide funds to maintain the landscape and lighting improvements and construct the capital improvements as described in the Engineer's Report. The City Council may amend the report or decrease the proposed assessments set forth in the Engineer's Report. SECTION 3. That it is in the public interest and it is the intention of the City Council to order that the expense necessary for the maintenance, repairs, replacement, utilities, care, supervision, and all other items necessary for proper maintenance and operation of the improvements shall be confirmed as an assessment upon each assessable lot or parcel of land lying within the district in proportion to the estimated benefits received from the existing landscape improvements. The Engineer's Report on file with the City Clerk describes in sufficient detail the boundaries of the district and the proposed assessment on each assessable lot or parcel of land included therein. SECTION 4. That the amounts to be assessed for the expense of such maintenance and operation of the improvements shall be levied and collected in the same manner and by the same officers as taxes for the City of Chino Hills and the County of San Bernardino and levies collected shall be disbursed and expended for maintenance, operation, and service of the improvements within the district, all as described in the Engineer's Report. SECTION 5. That the capital improvements described in the Engineer's Report shall be funded as disclosed in said report and that these funds may be accumulated over a five (5) year period and the proposed improvements shall be placed on a project priority list and completed as sufficient funds accrue and upon approval by the City Council. SECTION 6. The City Clerk is hereby ordered to certify to the passage of this Resolution and to forward a copy of the same to each of the following public bodies and officers: (a) The Auditor -Controller of the County of San Bernardino; (b) The Tax Collector of the County of San Bernardino; (c) The Director of Finance of the City of Chino Hills. Page 2 of 4 282/328 SECTION 7. The adoption of this Resolution constitutes the District Levy for the Fiscal Year commencing July 1, 2019, and ending June 30, 2020. SECTION 8. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 25th day of June, 2019. CYNTHIA MORAN, MAYOR ATTEST: CHERYL BALZ, CITY CLERK APPROVED AS TO FORM: MARK D. HENSLEY, CITYATTORNEY Page 3 of 4 283/328 STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO ) CITY OF CHINO HILLS § I, Cheryl Balz, City Clerk of the City of Chino Hills, DO HEREBY CERTIFY that the foregoing Resolution No. 2019R- was duly adopted at a regular meeting of the City Council of the City of Chino Hills held on the 25th day of June, 2019, by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Chino Hills, California, this 25th day of June, 2019. CHERYL BALZ, CITY CLERK Page 4 of 4 284/328 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 I 800.755.6864 F 951.587.3510 www.willdan.com/financial City of Chino Hills Vellano Landscaping and Lighting District 2019/2020 ENGINEER'S ANNUAL LEVY REPORT Initiation Meeting: February 12, 2019 Intent Meeting: May 28, 2019 Public Hearing: June 25, 2019 Wwi LLDAN 285/328 AFFIDAVIT FOR THE ENGINEER'S ANNUAL LEVY REPORT CHINO HILLS VELLANO LANDSCAPE AND LIGHTING DISTRICT This Report describes the District and relevant zones therein including the improvements, budgets, parcels and assessments to be levied for fiscal year 2019/2020, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Bernardino County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this _ day ofA/, 2019. Willdan Financial Services Assessment Engineer On Behalf of the City of Chino Hills By: / j:Lx:EJ Daniel Louie Project Manager, District Administration Services By: Richard Kopecky R. C. E. # 16742 286/328 WWI TABLE OF CONTENTS L OVERVIEW 1 A. INTRODUCTION 1 B. COMPLIANCE WITH CURRENT LEGISLATION 2 IL DESCRIPTION OF THE DISTRICT 2 A. GENERAL 2 B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 3 C. DESCRIPTION OF IMPROVEMENTS AND SERVICES 4 III. METHOD OF APPORTIONMENT 6 A. GENERAL 6 B. BENEFIT ANALYSIS 6 C. APPORTIONMENT FORMULA 9 D. ASSESSMENT RANGE FORMULA 13 IV. DISTRICT BUDGETS 15 APPENDIX A - DISTRICT BOUNDARY MAPS 17 APPENDIX B - 2019/2020 COLLECTION ROLL 19 287/328 W WILLDAN L OVERVIEW A. INTRODUCTION Pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the "1972 Act"), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the "Article XIIID"), the City Council of the City of Chino Hills, County of San Bernardino, State of California (hereafter referred to as "City"), in connection with the proceedings required for the annual levy and collection of special benefit assessment district designated as: Vellano Landscaping and Lighting District (hereafter referred to as "District"), which includes all lots and parcels of land within the subdivision known as Vellano, Tract 15164 within the City limits of Chino Hills. This Engineer's Report (hereafter referred to as "Report") has been prepared for the levy and collection of annual assessments related thereto for fiscal year 2019/2020, as required pursuant to Chapter 1, Article 4 of the 1972 Act. The City Council has previously approved the formation of the District to levy and collect annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the parks, trails, landscaping and lighting improvements associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provisions of the Article XIIID. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the San Bernardino County Assessor's Office. The San Bernardino County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments. At a noticed Public Hearing, the Council considered all public comments and written protests presented. Upon conclusion of this Hearing, the Council tabulated property owner protest ballots received to determine whether majority protest existed, and by resolution confirmed the results of the protest ballot tabulation. The tabulation of the property owner protest ballots indicated the approval of the assessments and the assessment range formula presented, therefore by resolution the Council approved the Engineer's Report. The Council, by resolution, then ordered the formation of the District and confirmed the levy and collection of assessments pursuant to the Act. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 1 of 19 288/328 WWI LLDAN B. COMPLIANCE WITH CURRENT LEGISLATION The District therein has been formed pursuant to the Act. This District and the special benefit assessments provide for the maintenance and servicing of the lighting improvements. The City Council annually conducts a public hearing to accept property owner and public comments and testimony, confirm the Report and approve the annual assessments to be levied on the County tax roll for the fiscal year. The assessments and method of apportionment described in the Report utilizes commonly accepted engineering practices and have been established pursuant to the Act and the provisions of the California Constitution Article XIIID (Proposition 218). The proposed assessment rates outlined in this report for fiscal year 2019/2020 are less than or equal to the maximum assessment rate based on the methodology and range of assessments previously approved. As such, property owner ballot proceedings are not required for this year's levy and the City Council may approve and adopt the assessments so described. I/. DESCRIPTION OF THE DISTRICT A. GENERAL The territory within the District consists of all lots, parcels and subdivisions of land within the golf course and residential subdivision known as Vellano, Tract 15164, which encompasses an area of land; including residential units and an eighteen - hole Golf Course, totaling approximately five hundred eighty acres (580 acres). This District is subdivided into two hundred four (204) single-family residential lots and an eighteen -hole golf course that includes a clubhouse and associated maintenance facilities. Development of the District is currently ongoing and one hundred seventy-one (171) of these lots are developed as of the date of this report. The District is situated in the southern portion of the City of Chino Hills near and along the current terminus of Woodview Road (Old Soquel Canyon Road). This development is generally located: • South of Chino Hills Parkway; • West of Peyton Drive; and, • East of Old Carbon Canyon Road The parcels within the District, at the time this Report was prepared, are identified by the San Bernardino County Assessor's Office as portions of Assessor's Parcel Maps, Book 1017 Pages 25, 26, 90, 91, 92, 98 and 99. Said maps are incorporated within this report by reference and a full listing of the parcels within the District as referenced by those maps is contained in Part V of this Report. In year 2018, the Vellano Golf Course closed its golf facilities. Despite the closure of the golf facilities, the golf course parcels still benefit from the landscaping and 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 2 of 19 289/328 WWI LLDAN lighting improvements within the district. The special benefits provided by the improvements remain valid for the parcels. B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following: • The installation or planting of landscaping; • The installation or construction of statuary, fountains, and other ornamental structures and facilities; • The installation or construction of public lighting facilities; • The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; • The maintenance or servicing, or both, of any of the foregoing; and/or • The acquisition of any existing improvement otherwise authorized pursuant to this section. Incidental expenses associated with the improvements including, but not limited to: • The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; • The costs of printing, advertising, and the publishing, posting and mailing of notices; • Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; • Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5; and/or • Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including: • Repair, removal, or replacement of all or any part of any improvement; • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; • The removal of trimmings, rubbish, debris, and other solid waste; and/or • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 3 of 19 290/328 WWI LLDAN C. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local parks, trails, open space access areas, landscaping, and street lighting improvements established or installed in connection with development of properties within the District. The improvements may consist of all or a portion of the public parks, trails within the surrounding open space areas including access points to the open space areas, streetscape landscaping within public easements and right-of-ways dedicated to the City, public street lighting, and appurtenant facilities associated with those improvements within and adjacent to Tract 15164. These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of the improvements constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as: • Streetscape landscaping including street trees located along Woodview Road and a portion of Aviano Court that are within the public right-of-ways or easements and dedicated to the City for maintenance; • Open corridors, pathways, and paseos within or adjacent to the District boundaries; • Local Park areas, recreational equipment, including water features, trails, and landscaped drainage facilities developed and constructed as part of developing properties within Tract 15164; • Public lighting facilities including all street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvement areas; • All appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements; • Specifically, not included as District improvements are those improvements located on private property, improvements and facilities that may be provided or maintained by an agency other than the City; improvements and facilities that may be provide by another assessment or tax levied by the City or any improvement provided and maintained by the Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Public Works, and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 4 of 19 291/328 try WILLDAN Landscape Improvements The landscape improvements for the District include the trails within the surrounding open space areas; local park amenities and facilities within Vellano Park and Overlook Park; and streetscape landscaping within the public -right-of- ways and easements on Woodview Road. The landscape improvement associated with these landscaped areas may include, but are not limited to turf, ground cover, shrubs and plants, trees, irrigation and drainage systems, ornamental lighting, masonry walls or other fencing, hardscape surfaces and improvements, monuments, fountains, playground equipment, sports courts and fields, park parking facilities, sidewalk and trail surfaces, and all associated appurtenant facilities located within the landscape easements, public right-of-ways or public facilities. Specifically, the landscape improvement areas for this District are identified as: Approximately 71,500 square feet of streetscape (parkway) landscaping, including 447 trees, located along the Woodview Road. Although there is a total of approximately 73,000 square feet of streetscape landscaping to be maintained along Woodview Road, approximately 1,500 square feet of this total landscaped area is located on private property and will not be maintained by the District. Of the 71,500 square feet of landscaped area to be maintained by the District, approximately ten percent (7,150 square feet) is located outside the tract and District boundaries along the eastern edge of the District. Even though this portion of the landscape improvements is outside the boundaries of Tract 15164, this landscaping was necessary as part of the street improvements required to develop properties within the District and properties within the District shall be assessed their proportionate share of maintaining this portion of the landscaping on Woodview Road. Further discussion of the apportionment between special benefit and general benefit from the improvements is provided in the Benefit Analysis section of this report; • Approximately 3,740 square feet of streetscape (parkway) landscaping, including 12 trees, located along the portion of Aviano Court from Woodview Road to Vellano Park. • Approximately 21,643 square feet of open corridors, pathways, and paseos within the District; • Approximately 142,408 square feet of irrigated parks (Vellano Park and Overlook Park) within the boundaries of the District, which includes 73,312 square feet of turf area; approximately 120 trees; and 69,096 square feet of plants and shrubs; along with various trees, playground equipment, water features, sport courts, and picnic areas; • Approximately 68,640 square feet of trails, connecting Vellano Park to the Overlook Park; 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 5 of 19 292/328 try WILLDAN Public Lighting Improvements The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with: • Public streetlights located on the streets within and adjacent to the development. There are seven (7) streetlights currently installed for Tract 15164 • Lighting facilities located within the parks and landscaped areas including all safety lights, security lights or ornamental lights installed as part of the District improvements. III. METHOD OF APPORTIONMENT A. 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 method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices and have been established pursuant to the 1972 Act and the provisions of the Article XIIID. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. B. BENEFIT ANALYSIS Each of the improvements, the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the Article XIIID and 1972 Act. The improvements provided by this District and for which properties will be assessed have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such, these improvements were determined during the development entitlement process to be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 6 of 19 293/328 WWI LLDAN the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District Special Benefit The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefit from the improvements and the desirability and security of those properties is enhanced by the presence of public lighting and well -maintained landscaping, trails and parks in close proximity to those properties. The special benefits associated with trails, parks and landscape improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties providing a positive representation of the area and properties. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. • Increased sense of pride in ownership of property within the District resulting from well -maintained improvements associated with the properties. • Enhanced quality of life through well -maintained green space and landscaped areas. • Reduced criminal activity and property -related crimes (especially vandalism) against properties in the District through well -maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. • Local exercise and recreational opportunities. The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads, streets and public areas. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. • Reduced vandalism and other criminal act and damage to improvements or property. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 7 of 19 294/328 WWI LLDAN • Improved traffic circulation and reduced nighttime accidents and personal property loss. All of the preceding special benefits contribute to the esthetic 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. General Benefit 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 associated with Vellano Park and Overlook Park are 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. Even though Vellano Park and Overlook Park are local public parks that may be accessed by the general public or other neighboring developments, these two parks are not necessary to support the general public or neighboring developments since similar parks, such as, Eucalyptus Nature Park and Hollow Run Nature Park, already exist within the surrounding area. Therefore, the construction of the Vellano Park and Overlook Park and the ongoing maintenance, servicing, and operation of these two local neighborhood parks provide no measurable amount of special benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Approximately ten percent (10%) of the parkway landscape improvements on Woodview Road that was constructed as part of the Vellano development that the City will maintain as part of the District, lies outside the District boundaries and does not provide any benefit to properties outside the District due to the undeveloped state the properties are in. Once development comes online, developed properties will receive some measure of benefit from the landscape improvements along this portion of Woodview Road. Although this portion of the landscape improvements is outside the boundaries of Tract 15164, the installation and construction of this landscaping was necessary as part of the street improvements required to develop properties within the District and therefore was previously determined to provide a special benefit to the properties within the District. However, the cost of maintaining this portion of the landscaping also benefits future planned residential subdivisions in the area that will be accessed from Woodview Road. Therefore, only a portion of the costs to maintain this section of the landscape improvements is considered special benefit and the remaining portion of the costs is considered a general benefit as long as the surrounding properties are undeveloped. While, the full development plan for the surrounding properties is unknown and may change, the planned future residential developments within the surrounding 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 8 of 19 295/328 WWI LLDAN areas will have a low density similar to that of the Vellano development. The Vellano development has a density of one (1) Single -Family Dwelling per 2.8 acres and applying this density factor to the 703 acres of surrounding properties that are zoned for residential development results in 204 units. The 204 units rounds to 55% of the total planned residential subdivisions, including the Vellano development, which will receive access off of Woodview Road. Therefore, 45% of the costs associated with this portion of the landscaping on Woodview Road should be considered as special benefit to properties within the District and 55% of the total cost to maintain the landscape improvements on Woodview Road has been identified as general benefit, but will become special benefit as undeveloped land becomes developed. As development comes online, the subdivisions may be annexed into the District and be assessed for the special benefit that developed residential properties will receive from this portion of the improvements along Woodview Road. While the improvements described in this Report include public areas, easements, right-of-ways, and other amenities available or visible to the public at large, it has been determined that the improvements for this District, and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to the public at large, or to properties outside the District other than those previously identified, but clearly provide distinct and special benefits to properties within the District. C. APPORTIONMENT FORMULA The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel's actual land use or proposed development. All costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the improvements it has been determined that each of the residential parcel within the District receives special benefits from all the improvements to be funded by the annual assessments while 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 9 of 19 296/328 try WILLDAN the Golf Course only receives direct and special benefit from the streetscape landscaping along Woodview Road and the maintenance of the open space areas. The Golf Course does not receive special benefit from the Vellano Park and Overlook Park due to the Golf Course providing its own recreational and park -like areas. Therefore, it has been determined to separate the District into two (2) distinct zones, Zone 1 and 2. Zone 1, includes all of the 204 single-family residential units within the District and Zone 2 includes the eighteen -hole Golf Course. In assessing the Golf Course properties, the entire benefits received by the Golf Course and associated assessments have been allocated to the golf course parcel that has the clubhouse. Each Zone's assessments will be allocated based on the proportional special benefit received by each parcel. Equivalent Benefit Units To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of all other properties within the District. The method of apportionment established for most districts formed under the 1972 Benefit Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment. A single-family home site equals one Equivalent Benefit Unit (EBU) and all other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and an eighteen -hole Golf Course, and the following apportionment analysis of special benefit addresses only these two land uses. However, not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that all other properties are compared and weighted against (i.e. Equivalent Benefit Unit EBU). Planned -Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 10 of 19 297/328 WWI LLDAN residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build -out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi -family units to be developed). Golf Course — This land use is defined as any golf course property that is part of the golf course or being used for the operation and maintenance of the golf course. The EBU's assigned to these properties are based on the trip generation of a golf course in comparison to that of a single-family residential unit. The trip generation conducted by Austin -Foust Associates, Inc. calculated a daily trip generation of 9.57 and 35.74 for a single-family residential unit and a single hole of a golf course, respectively. For the Vellano development, there is an eighteen -hole course, which would equate to 638 daily trips. Therefore, the assigned EBU's for the golf course equal 638/9.57 or 67 EBU's (rounded to the nearest integer). In assessing the Golf Course properties, the entire benefits received by the Golf Course and associated assessments have been allocated to the golf course parcel that has the clubhouse. Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Vacant Residential land will be assigned 0.00 EBU as long as there is not a tentative or final map approved. Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU. This land use classification may include but is not limited to: Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); Dedicated public easements including open space areas, utility rights -of -way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District; Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases — In many districts where multiple land use classifications are involved, there is usually one or more properties that the standard land use 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 11 of 19 298/328 WWI LLDAN classification does not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel's total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Land Uses and Equivalent Benefit Units Pro•ert T •e Equivalent Benefit Units Multi • lier Single Family Residential Planned -Residential Development Golf Course Vacant Residential Land Exempt Parcels 1.000 1.000 0.750 0.750 0.500 0.250 67.000 0.000 0.000 per Unit / Lot / Parcel per Planned SF -Residential Lot Per Planned Condominium Per Unit for the First 50 units Per unit for Units 51-100 Per Unit for all remaining Units Per Golf Course with Club House Per Parcel Per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements within each zone and dividing that amount by the total number of EBU's of all parcels benefiting from the improvements, for each respective zone. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for each zone. Total Balance to Levy for each Zone (Budget) / Total EBU within each Zone = Assessment Rate per EBU for each Zone Assessment Rate per EBU for each Zone x Parcel EBU = Levy per Parcel 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 12 of 19 299/328 try WILLDAN D. ASSESSMENT RANGE FORMULA Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval included a maximum assessment amount for fiscal year 2006/2007 (initial maximum assessment), identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein. The Assessment Range Formula for this District shall be applied to all future assessments and is generally defined: If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment. The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for fiscal year 2006/2007 adjusted annually by the greater of, three percent (3%) or the annual percentage change in the Consumer Price Index (CPI) of "All Urban Consumers" for the Los Angeles -Riverside Orange County from February of the prior year to February of the current year. In 2018, the Bureau of Labor Statistics re -aligned its indices and created a measurement for the Riverside -San Bernardino -Ontario, CA region. This region index is reported bi- monthly on odd numbered months. Since the Vellano district is within this newly formed region, starting in Fiscal Year 2019/2020 the CPI inflator will be based on the Riverside -San Bernardino -Ontario, CA region January -to -January values. Beginning in the second fiscal year (fiscal year 2007/2008) and each fiscal year thereafter, the Maximum Assessment Rate will be recalculated and a new Maximum Assessment Rate established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate shall be calculated independent of the District's annual budget and proposed assessment. The annual percentage change in CPI shall be based on available data provided by the U.S. Department of Labor; Bureau of Labor Statistics at the time the annual Report is prepared. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 13 of 19 300/328 try WILLDAN comparable system as approved by the City Council for determining fluctuations in the cost of living. Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment, even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increases the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classification is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the Article XIIID Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed. Maximum Assessment Table Fiscal Year CPI Charlie Greater of 3% or CPI Chan • e Zone 1 Maximum Zone 2 Maximum Assessment Assessment 2006/07 T 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20* N/A 3.50% 3.11% 0.00% 1.44% 2.27% 2.09% 2.22% 0.54% 0.10% 2.41% 2.71% 3.62% 3.05% N/A 3.50% 3.11% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.62% 3.05% $887.41000 $918.45866 $946.98836 $975.39801 $1,004.65995 $1,034.79974 $1,065.84374 $1,097.81905 $1,130.75362 $1,164.67623 $1,199.61652 $1,235.60501 $1,280.37722 $1,319.39145 $211.43000 $218.82750 $225.62485 $232.39360 $239.36540 $246.54637 $253.94276 $261.56104 $269.40787 $277.49011 $285.81481 $294.38925 $305.05646 $314.35180 * Starting in FY 2019/2020, the CPI is based on the Riverside -San Bernardino -Ontario, CA region index. Prior years were based on the Los Angeles -Riverside Orange County index. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 14 of 19 301/328 try WILLDAN IV. DISTRICT BUDGETS ANNUAL MAINTENANCE DIRECT COSTS COSTS NOT TOTAL ASSESSED ZONE01 ZONE02 Parkway/Slopes Maintenance Trail & Pathway Maintenance Park Maintenance Open Space Maintenance Tree Maintenance Landscape Utilities (Water/Electricity) Streetlight Maintenance and Energy Miscellaneous Landscape Materials & Equipment Miscellaneous Lighting Materials & Equipment Total Landscaping & Lighting Maintenance $25,644.15 23,850.94 93,693.14 7,91 1.77 12,600.00 41,300.00 1,200.00 28,500.00 0.00 $234,700.00 $1,248.04 0.00 0.00 0.00 757.64 360.14 0.00 320.83 0.00 $2,686.65 $18,478.81 23,850.94 93,693.14 5,933.82 9,594.69 38,348.98 1,106.28 26,489.49 0.00 $217,496.15 $5,917.30 0.00 0.00 1,977.94 2,247.67 2,590.88 93.72 1,689.68 0.00 $14,517.20 REPLACEMENT/REHABILITATION (CIP) Parkway/Slopes Rehabilitation/Replacement Tail & Pathway Rehabilitation/Replacement Park Rehabilitation/Replacement Open Space Rehabilitation/replacement Tree Rehabilitation/Replacement Streetlight Rehabilitation/Replacement Total Capital Improvement /Rehabilitation Budget $0.00 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 $0.00 $0.00 0.00 0.00 0.00 0.00 0.00 $0.00 ADMINISTRATION City Administration Overhead Professional Fees for Admin CountyAdministration Fee Miscellaneous Administration Expenses Total Administration Total Costs & Expenses LEVY ADJUSTMENTS Reserve Fund Collection/(Contribution) Revenues from Other Sources (Contribution)i1i General Benefit (Contribution) Total Levy Adjustments BALANCE TO LEVY Total Parcels Parcels Levied Total EBU Levy per EBU Maximum Levy per EBU (2) $113,014.00 $1,095.94 3,400.00 0.00 61.50 0.00 0.00 0.00 $116,475.50 $1,095.94 $351,175.50 $3,782.59 ($109,204.16) $0.00 (5,982.59) (3,782.59) 0.00 0.00 ($115,186.75) ($3,782.59) $235,988.74 $0.00 $104,945.62 $6,972.44 2,600.54 799.46 55.17 6.33 0.00 0.00 $107,601.33 $7,778.23 $325,097.48 $22,295.42 (102,195.52) ($7,008.64) (1,577.51) (622.49) 0.00 0.00 ($103,773.02) ($7,631.14) $221,324.46 $14,664.29 204 7 204 1 204.00 67.00 $1,084.92 $218.87 $1,319.39 $314.35 FUND BALANCE INFORMATION Estimated Beginning Reserve Balance Reserve Fund Collections / (Contribution) Estimated Ending Reserve Balance Estimated Beginning CIP Balance CIP Outlay CIP Fund Collections Estimated Ending CIP Balance Estimated Ending Fund Balance (Reserves & CIP) $159,974.59 (5,479.76) $154,494.83 $106,524.40 (2,800.00) (103,724.40) $0.00 $154,494.83 n/a $150,034.04 $9,940.55 0.00 (5,128.07) (351.69) n/a $144,905.97 $9,588.86 n/a $99,687.74 $6,836.66 0.00 (2,620.30) (179.70) 0.00 (97,067.45) (6,656.95) n/a $0.00 $0.00 n/a $144,905.97 $9,588.86 MAXIMUM ASSESSMENT RATE HISTORY Fiscal Year 2018/19 Fiscal Year 2017/18 Fiscal Year 2016/17 Fiscal Year 2015/16 Fiscal Year 2014/15 Fiscal Year 2013/14 $1,280.37 $305.05 $1,235.60 $294.38 $1,199.61 $285.81 $1,164.68 $277.49 $1,130.75 $269.40 $1,097.82 $261.56 APPLIED ASSESSMENT HISTORY Fiscal Year 2018/19 Fiscal Year 2017/18 Fiscal Year 2016/17 Fiscal Year 2015/16 Fiscal Year 2014/15 Fiscal Year 2013/14 $1,033.26 $208.45 $941.47 $206.35 $941.47 $208.91 $941.47 $208.98 $941.54 $223.13 $947.43 $207.54 (1) Portions of the landscaping along Woodview Road are outside the District boundaries and provides special benefit not onlyto properties within the District, but also to properties outside the District, once developed. The costs associated with the maintenance of the landscaping that benefit properties outside the District will be funded bythe City until development comes online and those properties are assessed. (2) Increases annually bythe greater of 3% or percentage change in the Consumer Price Indexfrom Januaryof the Prior Year to Januaryof the Current Year. NOTE: Slight variances due to rounding. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 15 of 19 302/328 WWI LLDAN The proposed Maximum Assessment per EBU shown above is based on the cost of providing the District improvements and does not include any other assessment charges imposed on the properties. For Fiscal Year 2019/20, the district budget has been re -organized to reflect the City's updated cost allocation plan. Certain costs that were included as part of Direct Costs in prior years have been transferred to Administration costs under City Overhead. The Capital Improvement Project (CIP) fund is used to upgrade certain improvements within the District. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 16 of 19 303/328 WWI LLDAN APPENDIX A — DISTRICT BOUNDARY MAPS The parcels within the Vellano Landscaping and Lighting District consist of all Tots, parcels and subdivisions of land located in the planned residential development known as Vellano, Tract 15164. The District covers approximately five hundred eighty acres (580 acres) in the southern portion of the City of Chino Hills. The following District Diagram is based on the San Bernardino County Assessor's Maps and the San Bernardino County Assessor's information and identifies all the parcels of land within the District, as the same existed at the time of formation of the District. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. The maximum assessment rate, assessment range formula and the proposed assessment amount for each of the existing parcels within the District as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the Article XIIID. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 17 of 19 304/328 WW1 LLDAN City of Chino Hills Vellano Landscape & Lighting District ILIMP 4/0 4 AL." *at" 4,4.14411:07.1rm lila ■ pi Nor air 44 wisr Legend Chino Hills City Boundary •.ellanc LLMD Boundary Vellano Landscape & Lighting District Not Part of Vellano LLD Parcels within Vellano LLD 0 D.125 0.2s D.5 0.75 1 Miles 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 18 of 19 305/328 try WILLDAN APPENDIX B — 2019/2020 COLLECTION ROLL Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Bernardino County Assessor's Office at the time the Engineer's Report was prepared. A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts is provided herein. Non -assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas, right-of-ways, common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore, if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. The following is a list of the parcels and proposed assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein. 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 19 of 19 306/328