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05-28-2019 CC Rpt 12COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: MAY 28, 2019 FROM: CITY MANAGER ITEM NO:12 SUBJECT:RESOLUTION TO SET TIME AND PLACE FOR THE PUBLIC HEARING OF ANNUAL ASSESSMENTS FOR THE CHINO HILLS LOS SERRANOS LIGHTING MAINTENANCE 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 CHINO HILLS LOS SERRANOS LIGHTING MAINTENANCE DISTRICT, SETTING THE DATE, TIME AND PLACE FOR CONFIRMATION OF ANNUAL ASSESSMENTS PURSUANT TO PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE, SECTION 22500 ET SEQ., STATE OF CALIFORNIA). BACKGROUND/ANALYSIS: The Chino Hills Los Serranos Lighting Maintenance District (District) was formed to provide street lighting maintenance and improvements throughout the District. On February 12, 2019, the City Council adopted Resolution No. 2019R-006 ordering the Engineer's Annual Levy Report for the 2019-20 fiscal year. Annually, the City Council must conduct a public hearing to review the cost of operation and maintenance for lighting as presented in the Engineer's Annual Levy Report and to set the annual assessments on properties within the District. The date for this hearing will be June 25, 2019. The Engineer's Annual Levy Report for fiscal year 2019-20, with proposed assessments and District map, are attached and are now on file with the City Clerk. ENVIRONMENTAL (CEQA) REVIEW: This action is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code § 2100, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations § 15000, et seq.) Section 15378 and is therefore exempt from CEQA. FISCAL IMPACT: Funding for the proposed maintenance and improvement expenses will be provided by the assessment charges proposed in the Engineer's Annual Levy Report and will be levied against those properties receiving benefit from the services provided. Funding for the Engineer's Report is contained within the 2018-19 fiscal year budget. 58/252 REVIEWED BY OTHERS: This item has been reviewed by the Finance Director. Respectfully Submitted,Recommended By: Attachments 2019-20 Engineer's Report for Los Serranos Resolution - Los Serranos Lighting District 59/252 City of Chino Hills Los Serranos Lighting Maintenance District 2019/2020 ENGINEER’S ANNUAL LEVY REPORT Initiation Meeting: February 12, 2019 Intent Meeting: May 28, 2019 Public Hearing: June 25, 2019 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 www.willdan.com/financial 60/252 61/252 TABLE OF CONTENTS I.OVERVIEW 1 A.INTRODUCTION 1 B.COMPLIANCE WITH CURRENT LEGISLATION 4 II.DESCRIPTION OF THE DISTRICT 4 A.GENERAL DESCRIPTION OF THE DISTRICT AND SERVICES 4 B.IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 5 C.DESCRIPTION OF IMPROVEMENTS 6 D.LOCATION OF LIGHTS AND PHASING 7 III.METHOD OF APPORTIONMENT 10 A.GENERAL 10 B.BENEFIT ANALYSIS & ASSESSMENT METHODOLOGY 11 C.ASSESSMENT RANGE FORMULA 12 IV.DISTRICT BUDGETS 13 A.DESCRIPTION OF BUDGET ITEMS 13 B.FISCAL YEAR 2019/2020 DISTRICT BUDGET 15 APPENDIX A – DISTRICT BOUNDARY MAPS 17 APPENDIX B – 2019/2020 COLLECTION ROLL 19 62/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 1 of 19 I. OVERVIEW A.INTRODUCTION In December 2003, the City Council (“Council”) of the City of Chino Hills (“City”) approved the Los Serranos Neighborhood Storm Drain Master Plan/Infrastructure Study Report (“Infrastructure Report”). A component of the Infrastructure Report was the lack of street lighting in the majority of the Los Serranos neighborhood. The report addressed the cost effectiveness of adding street lights during the construction of the drainage and other necessary infrastructure. An analysis of the lighting requirements was performed and 420 streetlights were proposed as part of the infrastructure project and were assumed in the Engineer’s Report. The construction cost of the Los Serranos Infrastructure Improvement Project was estimated to be $1.3 million and was anticipated to be funded primarily through Community Development Block Grants and other sources as they become available. To provide funding for the costs and expenses required for on-going operation and maintenance of the proposed lighting improvements, the City formed the Chino Hills Los Serranos Lighting Maintenance District (“District”). The District was formed and levied pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the Act), and in compliance with the substantive and procedural requirements of the California Constitution Article XIIID. This Engineer’s Report (“Report”) describes the District and assessments to be levied against properties within the District. The base year for the purposes of calculating the maximum assessment will be Fiscal Year 2004/2005. Each Phase will be levied only after the need for maintenance has been determined. The need for maintenance will be determined after the award of the construction contracts by City Council. The assessments described herein are based on the estimated cost to maintain the improvements that will provide a direct and special benefit to properties within the District. The annual costs and assessments described herein include the estimated direct expenditures, incidental expenses, deficits, surpluses, revenues, and reserves associated with the maintenance and servicing of the improvements. Each parcel shall be assessed proportionately for only those improvements provided and for which the parcel receives special benefit. The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number by the County of San Bernardino Assessor’s Office. The County of San Bernardino Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers, to identify on the tax roll, properties assessed for special district 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 63/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 2 of 19 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. Upon approval by the Council, the City will request Construction Bids for the installation of the street lights within the District. Once the construction contracts for each of the phases are awarded, those phases will become active and levied in the Fiscal Year following the year in which the construction contracts are awarded. Due to the timing of the financing, some of the Phases have been subdivided so that only parcels that front the improvements would be assessed.  Phase 1 has been divided into Phases 1A and 1B. A construction contract was awarded in Fiscal Year 2005/2006 for Phase 1A for Val Verde Avenue and Bird Farm Road. In Fiscal Year 2012/2013 a construction contract was awarded for the installation of Phase 1B along Valle Vista Drive and Descanso Avenue.  Phase 2 has been divided into Phases 2A and 2B. Streetlights were installed as part of a condominium project along Pomona Rincon Road between Banbury Court and Los Serranos Road. During Fiscal 2012/2013 the City assumed the expenses associated with these lights. Parcels that directly benefit from these lights have been grouped into Phase 2A and will be levied beginning in Fiscal 2013/2014. A construction contract has yet to be awarded for Phase 2B.  Phase 3 has been divided into Phases 3A, 3B and 3C. In Fiscal Year 2012/2013, improvements were anticipated along Country Club Drive between Bird Farm Road and Los Serranos Boulevard, along Los Serranos Road between Yorba Avenue and Pomona Rincon Road, and along Fairway Boulevard between Ramona Avenue and Mariposa Avenue. Parcels that directly benefit from these improvements were designated as Phase 3A. The remaining parcels were designated as Phase 3B. A construction contract for Phase 3B has yet to be awarded. As of the end of Fiscal Year 2013/2014, the improvements along Country Club Drive had yet to be installed. Therefore, parcels along this section were re- designated from Phase 3A to Phase 3C, and these parcels were not assessed in Fiscal Year 2014/2015. Monies already collected from parcels in Phase 3C were held in reserve until improvements are completed.  Phase 4 has been divided into Phases 4A, 4B and 4C. In Fiscal Year 2012/2013, improvements were anticipated to be built along Cecelia, Ethel and 64/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 3 of 19 Esther Streets between Williams Avenue and Los Serranos Boulevard; along Del Norte Avenue between Descanso Avenue and Gird Avenue; and along Descanso Avenue between Del Monte Avenue and Sierra Vista Drive The improvements along Del Norte Avenue and Descanso Avenue were improved as planned. Parcels that directly benefit from these improvements were designated as Phase 4A. The remaining parcels were designated as Phase 4B. A construction contract for Phase 4B has yet to be awarded. As of the end of Fiscal Year 2013/2014, the improvements along Cecelia, Ethel and Esther Streets had yet to be installed. Therefore, parcels along these streets were re-designated from Phase 4A to Phase 4C, and these parcels will not be assessed until the improvements are completed. Monies already collected from parcels in Phase 4C are being held in reserve until improvements are completed. Phase 5 has been divided into Phases 5A, 5B, 5C and 5D. In Fiscal Year 2012/2013, improvements were anticipated along Country Club Drive between Los Serranos Boulevard and Pipeline Avenue, along Williams Avenue between Yorba Avenue and Avery Street, and along Ramona Avenue between Bird Farm Road and Fairway Boulevard. Parcels that directly benefit from these improvements were designated as Phase 5A. The remaining parcels were designated as Phase 5B. A construction contract for Phase 5B has yet to be awarded. As of the end of Fiscal Year 2013/2014, the improvements along Country Club Drive and Williams Avenue had yet to be installed. Therefore, parcels along these streets were re-designated from Phase 5A to Phase 5C, and these parcels will not be assessed until the improvements are completed. Monies already collected from parcels in Phase 5C are being held in reserve until improvements are completed. A construction contract for Phase 5C has yet to be awarded. In Fiscal Year 2018/2019 a construction contract was awarded and improvements will be completed in Fiscal Year 2019/2020 on Monterey Avenue between Ramona Avenue and Mesa Boulevard; Brookview Court; and Mesa Boulevard between Ramona Avenue and Yorba Avenue. Parcels that directly benefit from these improvements are being re-designated from Phase 5B to Phase 5D and will be assessed beginning in Fiscal Year 2019/2020. For Fiscal Year 2017/2018, contracts were awarded for improvements on Country Club Drive, Williams Avenue, Esther Street, Yorba Avenue, and Los Serranos Boulevard. These improvements are located within sections of Phases 2B, 3C, 4C, 5B and 5C. Parcels that directly benefit from these improvements are being re-designated as Phase 6. 65/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 4 of 19  In Fiscal Year 2017/2018, contracts were awarded and improvements were completed in Fiscal Year 2018/2019 on Fairway Boulevard, Mariposa Avenue, Carmelita Avenue, Yorba Avenue, Murray Avenue, Esther Street, Ethel Street, Avery Street, Pheasant Street, and Quail Street. These improvements are located within sections of Phases 2B, 3B, 4B, 4C and 5B. Parcels that directly benefit from these improvements are being re-designated as Phase 7. 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. II. DESCRIPTION OF THE DISTRICT A. GENERAL DESCRIPTION OF THE DISTRICT AND SERVICES The District covers approximately two-hundred and ninety-six acres (296.17 acres) within the middle portion of the City of Chino Hills near State Highway 71 located: Generally, south of Village Drive, southwest of State Highway 71, west of Monte Vista Avenue and east of Pipeline Avenue. The District consists of the lots, parcels and subdivisions of land located in the area known as Los Serranos. It includes the following tracts and parcel map areas which are developed or vacant and proposed to be developed as residential developments:  Tracts 1932, 2557, 2562, 2576, 2650, 2652, 3193, 8137, 11353-1, 11353- 2, 11353-3, 11353, 13602 and 15105  Parcel maps 373, 719, 914, 8470 and 8471 66/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 5 of 19 At full development, the District is proposed to include approximately 1,697 assessable lots, of which the majority will be residential lots. The District excludes the existing large Golf Course (324.3 acres) and Mobile Home (96 acres) properties, which are adjacent to the Los Serranos neighborhood. These include seven assessor parcels, which are described in the current San Bernardino County Assessor Parcel Maps as Book 1025, Pages 55 and 56, and Book 1028, Page 47 and a portion of Page 35 and are shown below: Should the Golf Course acquire additional property that is located within the District after District formation, the acquired property will be assessed at a commercial land use and benefit unit rate. 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. The acquisition of any existing improvement otherwise authorized pursuant to this section. Incidental expenses associated with the improvements including, but not limited to: Assessor Parcel Number Assessor Parcel Number 1025-551-02 1025-561-07 1025-561-04 1028-351-10 1025-561-05 1028-471-01 1025-561-06 67/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 6 of 19  The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment;  The costs of printing, advertising, and the publishing, posting and mailing of notices;  Compensation payable to the County for collection of assessments;  Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;  Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.  Costs associated with any elections held for the approval of a new or increased assessment. The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:  Repair, removal, or replacement of all or any part of any improvement.  Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.  The removal of trimmings, rubbish, debris, and other solid waste.  The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. C. DESCRIPTION OF IMPROVEMENTS The street lighting improvements for the District include but are not limited to, the costs of electrical energy, the maintenance and operations costs of lighting fixtures, poles, meters, electrical cable and associated appurtenant facilities associated with:  Public street lighting within the residential subdivisions;  Public street lighting and other public lighting facilities on the streets surrounding or adjacent to the development. At full buildout, current plans propose a total of approximately 455 street lights. 68/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 7 of 19 D.LOCATION OF LIGHTS AND PHASING The Infrastructure Report provided for the installation of approximately 455 streetlights in five phases. Some phases have been subdivided due to the timing of project funding. Therefore, the phasing plan currently consists of seven phases. The tables below detail the location, phasing, and approximate number of the streetlights to be installed. Phases of Street Light Construction: Phase 1A Along From To Number Val Verde Ave. Pipeline Ave.Gird Ave.17 Bird Farm Rd. Ramona Ave.Pomona Rincon Rd. 22 Murray Blvd. Bird Farm Rd.El Molina Ln.6 Banbury Ct Bird Farm Rd.End 2 Yorba Ave. (East side) Bird Farm Rd.El Molina Ln.2 Total 49 Phase 1B Along From To Number Valle Vista Dr.. Pipeline Ave.Los Serranos Blvd. 21 Descanso Ave. Sierra Vista Dr.Valle Vista Ave. 4 Total 25 Phase 2A Along From To Number Pomona Rincon Rd. Bird Farm Rd.Los Serranos Blvd. 8 Total 8 Phase 2B Along From To Number Lugo Ave. Pipeline Ave.Valle Vista Ave. 9 Bird Farm Rd. Los Serranos Blvd.Ramona Ave.9 Pipeline Ave. Country Club Dr.Los Serranos Blvd. 15 Montecito Dr. Lugo Ave.Los Serranos Blvd. 5 Mariposa Dr. Bird Farm Rd.Mesa Blvd.4 Carmelita Ave. Bird Farm Rd.Mesa Blvd.4 Monterey Ave. Fairway Blvd.Mesa Blvd.10 Pomona Rincon Rd. Los Serranos Blvd.End (cul-de-sac) 8 Total 64 69/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 8 of 19 Phase 3A Along From To Number Los Serranos Rd. Yorba Ave.Pomona Rincon Rd. 20 Fairway Blvd. Ramona Ave.Mariposa Ave.3 Total 23 Phase 3B Along From To Number Fairway Blvd. Mariposa Ave.Pomona Rincon Rd. 16 Total 16 Phase 3C Along From To Number Country Club Dr.Sierra Vista Dr.Bird Farm Rd.3 Total 3 Phase 4A Along From To Number Del Norte Ave. Descanso Ave.Gird Ave.8 Descanso Ave. Del Monte Ave.Sierra Vista Dr.3 Total 11 Phase 4B Along From To Number El Molino Blvd. Pipeline Ave.Los Serranos Blvd. 10 Gird Ave. Pipeline Ave.Valle Vista Ave. 8 Sierra Vista Dr. Pipeline Ave.Country Club Dr. 15 Del Norte Ave. Gird Ave.Lugo Ave.2 Gird Ave. Country Club Dr.Valle Vista Ave. 11 Lugo Ave. Country Club Dr.Valle Vista Ave. 13 Wallace Ave. Bird Farm Rd.End (cul-de-sac) 3 Total 62 Phase 4C Along From To Number Ethel St. Los Serranos Rd.Williams Ave.4 Cecelia St. Los Serranos Rd.Williams Ave.4 Total 8 Phase 5A Along From To Number Ramona Ave. Fairway Blvd.Bird Farm Road 3 Total 3 70/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 9 of 19 Phase 5B Along From To Number Merced Ave. Country Club Dr.Val Verde Ave.4 Fresno Ave. Country Club Dr.Val Verde Ave.3 Monterey Ave. Country Club Dr.Val Verde Ave.3 San Jose Ave. Country Club Dr.Val Verde Ave.4 Del Monte Ave. Country Club Dr.Descanso Ave.4 Palo Alto Ave. Country Club Dr.Val Verde Ave.5 Los Serranos Blvd. Valle Vista Ave.Country Club Dr. 15 Ramona Ave. Fairway Blvd.Monterey Ave.10 Palomino Dr. Los Serranos Rd. (west)Los Serranos Rd. (east) 12 Pinto Way. Los Serranos Rd. Palomino Dr.5 Total 65 Phase 5C Along From To Number Country Club Dr. Pipeline Ave. East of Los Serranos Blvd.15 Total 15 Phase 5D Along From To Number Monterey Ave. Ramona Ave. Mesa Blvd. 6 Brookview Ct. Monterey Ave. End (cul-de-sac) 3 Mesa Blvd. Ramona Ave. Yorba Ave. 4 Total 13 Phase 6 Along From To Number Los Serranos Blvd. Pipeline Ave.El Molino Ave.11 Country Club Dr.East of Los Serranos Blvd.Sierra Vista Dr.12 Yorba Ave. Los Serranos Rd.Bird Farm Rd. 3 Williams Ave. Yorba Ave.Avery St.6 Esther St. Los Serranos Rd.Williams Ave.6 Total 38 71/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 10 of 19 Phase 7 Along From To Number Fairway Blvd. Mariposa Ave. Carmelita Ave. 1 Mariposa Ave. Fairway Blvd. Bird Farm Rd. 4 Carmelita Ave. Fairway Blvd. Bird Farm Rd. 5 Yorba Ave. Mesa Blvd. Bird Farm Rd. 5 Murray Ave. SR-71 Bird Farm Rd. 5 Esther St. Fairway Blvd. Williams Ave. 6 Ethel St. Fairway Blvd. Williams Ave. 6 Avery St. Fairway Blvd. Los Serranos Rd. 8 Pheasant St. Fairway Blvd. Los Serranos Rd. 7 Quail St. Fairway Blvd. Los Serranos Rd. 5 Total 52 III. METHOD OF APPORTIONMENT A. GENERAL Pursuant to the Act, the costs of the District may be apportioned by any formula or method that fairly distributes the net amount to be assessed among all assessable parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. The method of apportionment (method of assessment) is based on the premise that each assessed parcel within the District receives special benefit from the improvements. The special benefits of street lighting 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 and streets  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  Improved traffic circulation and reduced nighttime accidents and personal property loss  Enhanced desirability and security of properties is enhanced by the presence of street lighting in close proximity to those properties 72/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 11 of 19 B.BENEFIT ANALYSIS & ASSESSMENT METHODOLOGY Land Use Categories were assigned to each parcel in the District using the City’s classification of parcel zoning and developed or vacant status as a basis. Land Use Categories are reviewed on an annual basis. Each parcel is assigned a weighting factor known as a Benefit Unit Factor (BUF) based on its land use. The parcel’s BUF, multiplied by its acres or units, determines the parcel’s Equivalent Dwelling Unit (EDU). The following table describes the Land Use categories and Benefit Unit Factors assigned. Property Type BUF Value Multiplier Single Family Residential (SFR)1.00 Units Multi-Family Residential (MFR)1.00 Units Condominiums (CON)1.00 Units Commercial (COM) 4.00 Acres Single Family Vacant (SFV)0.75 Lots Commercial Vacant (CMV)0.75 Acres Multi Family Vacant (MFV) 0.25 Acres Undeveloped (UND) 0.25 Acres Vacant parcels shall be classified as Single Family Vacant, Commercial Vacant or Multi-Family Vacant based on their City Zoning. Parcels not zoned in one of these three categories shall be levied as Undeveloped (UND). Ac/Un is an abbreviation for Acreage or Units and represents the acreage or units used as a multiplying factor for a specific land use type. The Total EDU in a Phase is the sum of all parcel’s individual EDU’s that receive benefit from the maintenance of improvements installed within the Phase. Each fiscal year, the City shall review the phasing of construction. Each Phase will be considered an active Phase and each parcel within an active Phase will be considered assessable in the fiscal year after which Council has awarded the construction contract for installation of the street lights for the Phase. 73/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 12 of 19 C.ASSESSMENT RANGE FORMULA The following formula is used to arrive at a levy amount for parcels in the District: Parcel’s BUF x Ac/Un = Parcel’s EDU Total Balance to Levy / Total EDU in all active Phases = Levy per EDU Parcel’s EDU x Levy per EDU = Parcel’s Levy Amount For the base fiscal year 2004/2005 the Maximum Assessment was equal to this Assessment. This method of calculating the Parcel Levy Amount shall be applied to all future assessments within the District. In addition, a Parcel’s Levy Amount will be adjusted annually by a factor equivalent to any rate of increase during that fiscal year for electricity usage as charged to the District by Southern California Edison or the current purveyor of electrical services. The purpose for this adjustment is explained below: 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). It is anticipated that, commencing on July 1, 2005, and on July 1st of each Fiscal Year, the Maximum Assessment shall increase by the rate of increase during that fiscal year for electricity usage as charged to the District by Southern California Edison or the current purveyor of electrical services. Such a proposed annual increase would not be considered an increased assessment, even if the proposed assessment were greater than the assessment applied in the prior fiscal year. Generally, the purpose of establishing an Assessment Range 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’s costs and assessments. 74/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 13 of 19 IV. DISTRICT BUDGETS A.DESCRIPTION OF BUDGET ITEMS The following describes the services and costs that are funded through the District shown in the District Budgets. Estimated Number of Street Lights – Is equal to the estimated number of lights to be installed. Maintenance and Operations – Includes energy costs, maintenance, and operations of lighting fixtures, poles, meters, electrical cable and associated appurtenant facilities. Personnel and Overhead – Includes the City’s cost for overseeing the District. Professional Services – Includes any costs of the City to contract for administration of the District. County Administration Fees – Is the County’s service charge for placing the assessments onto the County Tax Roll. Miscellaneous Administration – Includes other minor administrative costs such as telephone and copying costs. Operating Reserve Fund Collection – Includes funds being set aside specifically to provide a cash flow reserve. This Reserve is used to retain an adequate amount of funds to meet the required expenditures for the District from the period of July 1 (the beginning of the Fiscal Year) through December. Each December, the County provides the City with the first installment of assessments collected from the property tax bills. The Reserve eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during this first half of the fiscal year. General Fund Reimbursement (Subsidy) – Until the District is built out, a contribution from the general fund will be used to fulfill the special assessment amount required for the district. Upon build out, when the District is self-sufficient, the funds advanced from the General Fund will be reimbursed. Balance to Levy – This is the total amount to be levied to the currently assessable parcels within the District. The Balance to Levy represents the total direct and administration costs, plus any reserve fund collection, minus any beginning balance, City general fund contribution or other reserve sources. This dollar amount represents the funds that are to be collected for that Fiscal Year from the property owners. 75/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 14 of 19 Total Lots/Parcels Levied – Is equal to the total number of currently assessable parcels for the current fiscal year. Total Equivalent Dwelling Unit (EDU) – The Equivalent Dwelling Unit (EDU) is a numeric value calculated for each parcel based on the parcel’s land use and size as compared to a single family residence. The EDU shown in the District budgets represents the sum total of all currently assessable parcels EDU’s that receive benefit from the improvements. Current Fiscal Year Levy per EDU – is the amount levied for each Equivalent Dwelling Unit (EDU) for the current Fiscal Year. For a more detailed explanation please refer to the Method of Apportionment. Maximum Levy per EDU – is equal to the maximum assessment based on the balloted assessment. This amount will increase annually to include the approved escalator. 76/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 15 of 19 B. FISCAL YEAR 2019/2020 DISTRICT BUDGET Direct Costs Maintenance & Operations $19,000 Direct Costs (Subtotal) $19,000 Administration Costs Personnel and Overhead $4,898 Professional Services 3,000 County Administration Fees 245 Miscellaneous Administration 0 Administration Costs (Subtotal) $8,143 Total Direct and Administration Costs $27,143 Levy Breakdown Total Direct and Administration costs $27,143 Operating Reserve Fund Collection / (Contribution) 21,166 Reduction in Reserves Held for Phases 3C, 4C and 5C 0 General Fund Reimbursement (Subsidy) 0 Total Balance to Levy $48,310 District Statistics Total Parcels Levied 818 Total Equivalent Dwelling Units 836.53 Current Fiscal Year Levy per EDU $57.75 Maximum Levy per EDU $57.75 Fund Balance Information Estimated Beginning Reserve Balance (06/30/19) $32,185 Reserve Fund Collections / (Contribution) 21,166 Reserves held for Phases 3C, 4C and 5C (4,533) Estimated Ending Reserve Balance (06/30/20) $48,818 Historical Rates Electrical Rates1 Maximum Assessment2 Applied Assessment Fiscal Year 2019/2020 8.53 $57.76 $57.75 Fiscal Year 2018/2019 8.53 $57.76 $57.75 Fiscal Year 2017/2018 8.39 $57.76 $57.75 Fiscal Year 2016/2017 8.81 $57.76 $57.75 Fiscal Year 2014/2015 8.81 $57.76 $57.75 Fiscal Year 2013/2014 8.91 $57.76 $57.75 Fiscal Year 2012/2013 8.91 $57.76 $57.75 Fiscal Year 2011/2012 8.77 $56.85 $56.84 Fiscal Year 2010/2011 8.77 $56.85 $56.84 Fiscal Year 2009/2010 7.56 $49.00 $49.00 Fiscal Year 2008/2009 7.02 $45.51 $45.50 Fiscal Year 2007/2008 7.02 $45.51 $45.50 1 Southern California Edison Schedule LS-1 70-Watt High Pressure Sodium Vapor Lamps 2 Maximum Assessment shall increase when the rates for electricity usage as charged to the District by Southern California Edison increases 77/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 16 of 19 The proposed phasing of parcels is shown as follows: District Statistics Phase 1A Phase 1B Phase 2A Phase 2B Phase 3A Phase 3B Phase 3C Total Lots / Parcels 172 61 77 206 39 51 9 Total Equivalent Dwelling Units 170.75 59.75 65.39 199.75 39.68 51.00 8.75 District Statistics Phase 4A Phase 4B Phase 4C Phase 5A Phase 5B Phase 5C Phase 5D Total Lots / Parcels 33 305 33 2 246 38 101 Total Equivalent Dwelling Units 30.60 306.25 32.25 1.75 243.00 37.50 136.50 District Statistics Phase 6 Phase 7 Build out Totals Total Lots / Parcels 121 212 1,706 Total Equivalent Dwelling Units 122.00 210.11 1,715.03 The following table shows the applied charges by phase: Phase Parcel Count EDU  FY 2019/20  Charge  1A 172 170.75 $9,860.80   1B 61 59.75 3,450.55   2A 77 65.39 3,776.07   3A 39 39.68 2,291.53   4A 33 30.60 1,767.14   5A 2 1.75 101.06   5D 101 136.50 7,883.11   6 121 122.00 7,045.51   7 212 210.11 12,133.83   Grand Total 818 836.53 $48,309.60   78/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 17 of 19 APPENDIX A – DISTRICT BOUNDARY MAPS The boundaries of the Chino Hills Los Serranos Lighting Maintenance District are depicted on the District Diagram shown on the following page and are inclusive of all Assessors’ Parcel Numbers within the District. This map constitutes the Assessment Diagram for the Chino Hills Los Serranos Lighting Maintenance District. The lines and dimensions for each lot or parcel within the District shall be the parcel as shown on the San Bernardino County Assessor Parcel Maps and/or the San Bernardino County Secured Tax Roll for the year in which this Report is prepared. 79/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 18 of 19 80/252 2019/2020 City of Chino Hills Los Serranos Lighting Maintenance District Page 19 of 19 APPENDIX B – 2019/2020 COLLECTION ROLL Parcel identification for each lot or parcel within the District shall be the parcel as shown on the San Bernardino County Assessor Parcel Maps and/or the San Bernardino County Secured Tax Roll for the year in which this Report is prepared. Non-assessable lots or parcels may include government owned land, public utility owned property, land principally encumbered with public right-of-ways or easements and dedicated common areas. These parcels will not be assessed. A listing of parcels within the District, along with the proposed assessment amounts are on the following pages. If the parcels or assessment numbers within the District and referenced in this Report are re-numbered, re-apportioned or changed by the County Assessor’s Office after approval of the Report, the new parcel or assessment numbers with the appropriate assessment amount will be submitted to the County Auditor/Controller. If the parcel change made by the County includes a parcel split, parcel merger or tax status change, the assessment amount submitted on the new parcels or assessment numbers will be based on the method of apportionment and levy amount approved in this Report by the Council. 81/252 1 of 3 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 CHINO HILLS LOS SERRANOS LIGHTING MAINTENANCE DISTRICT, SETTING THE DATE, TIME, AND PLACE FOR CONFIRMATION OF ANNUAL ASSESSMENTS PURSUANT TO PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE, SECTION 22500 ET SEQ., STATE OF CALIFORNIA) WHEREAS, on February 12, 2019, the City Council of the City of Chino Hills adopted Resolution No. 2019R-006 ordering an Engineer’s Report for annual assessments for Chino Hills Los Serranos Lighting Maintenance District street lighting and other similar appurtenances 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 said Resolution setting forth the proposed annual assessments for fiscal year 2019-20 is on file with the City Clerk; and WHEREAS, the City Council does 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 fixed place for a Public Hearing at which time any and all persons having any objections to the confirmation of the assessments for fiscal year 2019-20 can appear before the City Council to protest such confirmation. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HILLS DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. That the public interest and convenience require, and it is the intention of the City Council, to levy and collect for the expenses necessary for the maintenance of Chino Hills Los Serranos Lighting Maintenance District. SECTION 2. That the Engineer's Report for the proposed Chino Hills Los Serranos Lighting Maintenance District annual assessments was filed with the City Clerk and submitted to the City Council this date. The Engineer’s Report may be referred to for a full and detailed description of the boundaries of the assessment district, and any zones therein and the proposed assessments upon assessable lots and parcels of land within the District. SECTION 3. That on June 25, 2019, at 7:00 p.m., the City Council will conduct a public hearing in the Council Chambers of City Hall located at 14000 City Center Drive, Chino Hills, to give all interested persons an opportunity to hear and be heard on the proposed assessments to be levied on Chino Hills Los Serranos Lighting Maintenance District for fiscal year 2019-20, as contained in the Engineer's Report on file in the City Clerk's Office. 82/252 2 of 3 SECTION 4. That on June 25, 2019, 7:00 p.m., the City Council will confirm the proposed assessments to be levied on Chino Hills Los Serranos Lighting Maintenance District for fiscal year 2019-20, as contained in the Engineer's Report on file in the City Clerk's Office. The City Council shall consider all oral statements and written protests made or filed by any interested person. SECTION 5. The City Clerk is hereby directed to give notice pursuant to Street and Highways Code Section 22552 and 22553, as applicable. SECTION 6. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 28th day of May, 2019. CYNTHIA MORAN, MAYOR ATTEST: CHERYL BALZ, CITY CLERK APPROVED AS TO FORM: MARK D. HENSLEY, CITY ATTORNEY 83/252 3 of 3 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 28th day of May 2019, by the following vote, towit: 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 day of May, 2019. CHERYL BALZ, CITY CLERK 84/252