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05-28-2019 CC Rpt 14COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: MAY 28, 2019 FROM: CITY MANAGER ITEM NO:14 SUBJECT:RESOLUTION TO SET TIME AND PLACE FOR THE PUBLIC HEARING OF ANNUAL ASSESSMENTS FOR THE 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 LANDSCAPE AND LIGHTING DISTRICT, SETTING THE DATE, TIME AND PLACE FOR CONFIRMATION OF ANNUAL ASSESSMENTS FOR THE CHINO HILLS VELLANO LANDSCAPE AND LIGHTING DISTRICT, PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE, SECTION 22500 ET SEQ., STATE OF CALIFORNIA). BACKGROUND/ANALYSIS: The Chino Hills Vellano Landscape and Lighting District (District) was formed to provide street lighting, park, open space, landscaping maintenance, and improvements throughout the District. On February 12, 2019, the City Council adopted Resolution No. 2019R-004 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 for Landscape and 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, is attached and is 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. 105/252 REVIEWED BY OTHERS: This item has been reviewed by the Finance Director. Respectfully Submitted,Recommended By: Attachments 2019-20 Engineer's Report for Vellano L&L District Resolution - Vellano Landscape and Lighting District 106/252 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 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 www.willdan.com/financial 107/252 108/252 TABLE OF CONTENTS I.OVERVIEW 1 A.INTRODUCTION 1 B.COMPLIANCE WITH CURRENT LEGISLATION 2 II.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 19 109/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 1 of 19 I. 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. 110/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 2 of 19 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 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 111/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 3 of 19 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. 112/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 4 of 19 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. 113/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 5 of 19 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; 114/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 6 of 19 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 115/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 7 of 19 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. 116/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 8 of 19  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 117/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 9 of 19 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 118/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 10 of 19 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 119/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 11 of 19 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 120/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 12 of 19 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 Property Type Equivalent Benefit Units Multiplier Single Family Residential 1.000 per Unit / Lot / Parcel Planned-Residential Development 1.000 per Planned SF-Residential Lot 0.750 Per Planned Condominium 0.750 Per Unit for the First 50 units 0.500 Per unit for Units 51-100 0.250 Per Unit for all remaining Units Golf Course 67.000 Per Golf Course with Club House Vacant Residential Land 0.000 Per Parcel Exempt Parcels 0.000 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 121/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 13 of 19 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 122/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 14 of 19 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 Change Greater of 3% or CPI Change Zone 1 Maximum Assessment Zone 2 Maximum Assessment 2006/07 N/A N/A $887.41000 $211.43000 2007/08 3.50% 3.50%$918.45866 $218.82750 2008/09 3.11% 3.11%$946.98836 $225.62485 2009/10 0.00% 3.00%$975.39801 $232.39360 2010/11 1.44% 3.00%$1,004.65995 $239.36540 2011/12 2.27% 3.00%$1,034.79974 $246.54637 2012/13 2.09% 3.00%$1,065.84374 $253.94276 2013/14 2.22% 3.00%$1,097.81905 $261.56104 2014/15 0.54% 3.00%$1,130.75362 $269.40787 2015/16 0.10% 3.00%$1,164.67623 $277.49011 2016/17 2.41% 3.00%$1,199.61652 $285.81481 2017/18 2.71% 3.00%$1,235.60501 $294.38925 2018/19 3.62% 3.62%$1,280.37722 $305.05646 2019/20* 3.05% 3.05%$1,319.39145 $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. 123/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 15 of 19 IV.DISTRICT BUDGETS 124/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 16 of 19 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 the District 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. 125/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 17 of 19 APPENDIX A – DISTRICT BOUNDARY MAPS The parcels within the Vellano Landscaping and Lighting District consist of all lots, 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. 126/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 18 of 19 127/252 2019/2020 City of Chino Hills Vellano Landscape and Lighting District Page 19 of 19 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. 128/252 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 THE CHINO HILLS VELLANO LANDSCAPE AND LIGHTING DISTRICT, SETTING THE DATE, TIME AND PLACE FOR CONFIRMATION OF ANNUAL ASSESSMENTS FOR THE CHINO HILLS VELLANO LANDSCAPE AND LIGHTING DISTRICT, PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE, SECTION 22500 ET SEQ. STATE OFCALIFORNIA) 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 annual assessments for Chino Hills Vellano Landscape and Lighting District street lighting, open space, park, 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 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 Vellano Landscape and Lighting District. SECTION 2. That the Engineer's Report for the proposed Chino Hills Vellano Landscape and Lighting Assessment 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 improvements, 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. The improvements to the District shall only include improvements that were previously authorized by theDistrict. 129/252 2 of 3 SECTION 4. 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 Vellano Landscape and Lighting District for fiscal year 2019-20, as contained in the Engineer's Report on file in the City Clerk's Office. SECTION 5. That on June 25, 2019, 7:00 p.m., the City Council will confirm the proposed assessments to be levied on Chino Hills Vellano Landscape and Lighting 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 6. The City Clerk is hereby directed to give notice pursuant to Street and Highways Code Section 22552 and 22553, as applicable. SECTION 7. 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 130/252 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 131/252