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05-28-2019 CC Rpt 15COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: MAY 28, 2019 FROM: CITY MANAGER ITEM NO:15 SUBJECT:RESOLUTION TO SET TIME AND PLACE FOR THE PUBLIC HEARING OF ANNUAL ASSESSMENTS FOR SPECIAL MAINTENANCE AREAS 1 AND 2 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 SPECIAL MAINTENANCE AREAS 1 AND 2, SETTING THE DATE, TIME, AND PLACE FOR CONFIRMATION OF ANNUAL ASSESSMENTS FOR SPECIAL MAINTENANCE AREAS 1 AND 2. BACKGROUND/ANALYSIS: Special Maintenance Area 1 was formed to provide street sweeping services throughout Chino Hills, and to levy a special service charge to cover the costs of furnishing that service. Chino Hills Special Maintenance Area 2 was formed to provide road maintenance in the Sleepy Hollow area, and was also empowered to collect a special service fee to pay for that service. On February 12, 2019, the City Council adopted Resolution No. 2019R-005 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 Chino Hills Maintenance Areas 1 and 2 as presented in the Engineer's Annual Levy Report and to set the annual assessments on properties within the Districts. 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 also 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. 132/252 REVIEWED BY OTHERS: This item has been reviewed by the Finance Director. Respectfully Submitted,Recommended By: Attachments 2019-20 Engineer's Report for SMA 1 and 2 Resolution - Special Maintenance Areas 1 and 2 133/252 City of Chino Hills Special Maintenance Areas 1 & 2 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 134/252 135/252 AGENCY: CITY OF CHINO HILLS PROJECT: CITY OF CHINO HILLS SPECIAL MAINTENANCE AREAS 1 AND 2 EXTENDED SERVICES REPORT TO: CITY COUNCIL CITY OF CHINO HILLS STATE OF CALIFORNIA REPORT PURSUANT TO SPECIAL MAINTENANCE AREA EXTENDED SERVICES REPORT Pursuant to direction from the City Council, submitted herewith is the “Report”, consisting of the following parts, pursuant to the provisions of Division 2, Title 3 of the Government Code of the State of California, being the “Charges for Extended Service” as amended, commencing with Section 25210.77a. This “Report” is applicable for the ensuing 12-month period, being the fiscal year commencing July 1, 2019. PART 1. AN ESTIMATE OF THE COSTS of the improvements to be maintained and/or improved for the mentioned fiscal year. PART 2 AN EXTENDED SERVICE CHARGE ROLL showing the proportionate amount of the service charge in proportion to the benefits to be received by each lot or parcel with the exterior boundaries as shown on the attached diagram. Final approval, confirmation and levy of the annual assessment and all matters in the Annual Report were made on the ____ day of ___________, 2019 by adoption of Resolution No. _____by the City Council. CITY CLERK CITY OF CHINO HILLS STATE OF CALIFORNIA A copy of the Assessment Roll and Annual Report were filed in the Office of the City Clerk on the ______ day of ___________, 2019. CITY CLERK CITY OF CHINO HILLS STATE OF CALIFORNIA It is my opinion that the assessments for the following Special Maintenance Areas have been spread in accordance with the direct benefit that each parcel receives from the works of improvement. DATED: , 2019. CITY MANAGER CITY OF CHINO HILLS STATE OF CALIFORNIA 136/252 TABLE OF CONTENTS I. OVERVIEW 1 A. INTRODUCTION 1 B. COMPLIANCE WITH CURRENT LEGISLATION 1 II. DESCRIPTION OF THE DISTRICT 2 A. SPECIAL MAINTENANCE AREA 1 2 B. SPECIAL MAINTENANCE AREA 2 3 III. METHOD OF APPORTIONMENT 3 A. SPECIAL MAINTENANCE AREA 1 3 B. SPECIAL MAINTENANCE AREA 2 4 IV. DISTRICT BUDGETS 5 APPENDIX A – DISTRICT BOUNDARY MAPS 7 APPENDIX B – 2019/2020 COLLECTION ROLL 8 137/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 1 of 8 I. OVERVIEW A. INTRODUCTION Upon incorporation in 1991, the City of Chino Hills (“City”) adopted Ordinance No. 91-01 that adopted, among others, the following Ordinances by the County of San Bernardino (“County”):  SD91-11 which provides for the computation, levy, and collection of a special service charge for street sweeping services in Chino Hills Special Maintenance Area 1;  83-2 which provides for the computation, levy, and collection of an extended service charge for road maintenance in Chino Hills Special Maintenance Area 2. The Engineer’s Annual Levy Report (“Report”) describes the Special Maintenance Areas 1 and 2 (“Areas”) and the proposed levy charges for Fiscal Year 2019/2020. The charges are based on the historical and estimated cost to properties within the Areas. For the purposes of this Report, the word “parcel” refers to an individual property assigned its own Assessor Parcel Number by the County Assessor’s Office. The County Auditor/Controller uses Assessor Parcel Numbers and specific Fund Numbers to identify properties assessed for special district benefit assessments, fees or charges on the tax roll. Following consideration of all public comments and written protests at a noticed public hearing and review of the Annual Report, the City Council (“Council”) may order amendments to the Report or confirm as submitted. Following final approval of the Report and confirmation of the charges, the Council may then order the charges for Fiscal Year 2019/2020. In such case, the charges will be submitted to the County Auditor/Controller and included on the property tax roll for each parcel in Fiscal Year 2019/2020. B. COMPLIANCE WITH CURRENT LEGISLATION On November 5, 1996, California voters approved Proposition 218 by a margin of 56.5% to 43.5%. The provisions of the Proposition, now California Constitutional Articles XIIIC and XIIID, can be summarized in four general areas: 1. Strengthens the general and special tax provisions of Proposition 13 and Proposition 62. 2. Extends the initiative process to all local taxes, assessments, fees, and charges. 3. Adds substantive and procedural requirements to assessments. 4. Adds substantive and procedural requirements to property-related fees and charges. 138/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 2 of 8 The charges contained in this report are specific to road maintenance. As such, the City has determined that pursuant to California Constitutional Article XIIID Section 5 Subsection A the existing assessments are exempt from the substantive and procedural requirements of Proposition 218. Any new or increased assessments above the maximum assessment rates previously approved and levied by the City Council would be subject to both the substantive and procedural requirements of the Proposition. II. DESCRIPTION OF THE DISTRICT A.SPECIAL MAINTENANCE AREA 1 The original area comprising Special Maintenance Area 1 (“SMA 1”) was formerly County Service Area 70, ("CSA 70") Zone CH, representing Chino Hills, which was formed by the County and was comprised of parcels within the current city boundary of the City. The CSA 70 maintenance, annual engineer’s report and assessment levy services were provided by the County until incorporation by the City in 1991 (reference is made to Local Agency Formation Commission Proposal No. LAFCO 2650, Resolution No. 2320 dated May 15, 1991). As part of the incorporation, CSA 70 was dissolved and responsibility for the service area was transferred to the City. The service area was renamed Special Maintenance Area No. 1. The City began full maintenance and administration of SMA 1 beginning Fiscal Year 1992/1993. SMA 1 provides for the street sweeping (and related services) of arterial and local streets (local streets include all streets other than arterials) and the trimming of trees along the street right of way. The streets serviced by the District are all within the boundaries of SMA 1 and provide a direct and special benefit to the District parcels. All such parcels are located within the City. In addition to safety and beautification, street sweeping benefits the parcels by providing a positive image to visitors and enhancing the desirability of property. The street sweeping and related services that are provided are grouped into three (3) service levels based on parcel land use and frequency of service. Commercial properties receive street sweeping two (2) times per month. Non-Commercial properties receive arterial street sweeping two (2) times per month. Local properties receive local street sweeping two (2) times per month and additionally benefit from arterial street sweeping. 139/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 3 of 8 B.SPECIAL MAINTENANCE AREA 2 Special Maintenance Area 2 (“SMA 2”) provides for the maintenance of certain roads and improvements in the Sleepy Hollow area within the City. In addition to safety and beautification, road maintenance and improvements benefit the parcels by providing a positive image to visitors and enhancing the desirability of property. A benefit value is assigned to each improved parcel and each unimproved parcel and assessed accordingly. III. METHOD OF APPORTIONMENT The following formulas are used to arrive at a levy amount for parcels in each Area: A.SPECIAL MAINTENANCE AREA 1 Based on Equivalent Curb Miles (ECM’s) swept, benefit assessment units are assigned: to each non-commercial parcel benefiting from arterial street sweeping; to each non-commercial local street parcel benefiting from local street sweeping; and to each commercial property benefiting from arterial street sweeping. ECM’s for each service type are determined by the following formula: ECM’s = No. of Sweeps per Month x 12 Months x No. of Curb Miles The rate for each service is determined by the following formula: Rate per Acre or Parcel = Service Type ECM’s x Budgeted Costs Total ECM’s Acres or Units The current rates for street sweeping were established in Fiscal Year 1997/98 and represent a decrease from rates levied prior to Proposition 218. These rates were based on a total of 7,958.4 equivalent curb miles and a budget of $173,213.37. The rates were calculated by spreading the budget according to the proportionate ECM’s for each type of property. The City has determined that there will be no further increases in the per-parcel or per-acre rate for street sweeping, effectively fixing these rates at their current level. The table below describes how these rates were calculated. 140/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 4 of 8 Type of Property Rate Per Acre or Parcel Commercial 556.8 ECM’s X $173,213 (Costs) = $51.71/Acre 7,958.4 ECM’s 234.37 Acres Non-Commercial Parcels (For Arterial Street Sweeping) 1,908 ECM’s X $173,213 (Costs)= $2.34/Parcel 7,958.4 ECM’s 17,716 non-commercial parcels Local Street Parcels (For Local Street Sweeping) 5,493.6 ECM’s X $173,213 (Costs)= $9.76/Parcel 7,958.4 ECM’s 12,257 local street parcels NOTE: Local Street Parcels derive benefit from Arterial street sweeping as well as Local street sweeping. The rate per Local street parcel is $2.34 + $9.76 = $12.10. B. SPECIAL MAINTENANCE AREA 2 Properties in this area are assessed at the following rates: $42.00 per improved parcel $24.00 per unimproved parcel Previous street maintenance assessments for SMA 2 were based on rates calculated by San Bernardino County. These rates have remained constant since incorporation of the City. The City has determined that there will be no further changes to the rate or method of apportionment for street maintenance in SMA 2, and therefore no changes in rate are planned for Fiscal Year 2019/2020. 141/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 5 of 8 IV. DISTRICT BUDGETS Table I Special Maintenance Area 1 Proposed FY 2019/2020 Street Sweeping Contract (Includes Water) $168,400 Capital Outlay 0 Vehicle Rental 0 Street Signs 500 Refuse Disposal 0 Tree Pruning and Removal 5,800 Operations and Management 47,847 2019/2020 Estimated Costs $222,547 Reserve Fund Collections / (Contributions) 30 Other Revenue Sources Collections / (Contributions) 0 General Fund Support (17,798) 2019/2020 Estimated Charges $204,779 Estimated Reserves (As of June 30, 2019) $7,649 Estimated Reserve Balance (After Expense) $7,679 Total Active Parcels in District 23,026 Total Parcels Levied 22,652 2019/2020 Applied Levy Rate per LUC Commercial (per acre) $51.71 Non-Commercial Parcels (per parcel) $2.34 Local Street parcels (per parcel) $9.76 Historical Applied Levy Rate per LUC COM NONCOM LOC FY 2018/19 $51.71 $2.34 $9.76 FY 2017/18 $51.71 $2.34 $9.76 FY 2016/17 $51.71 $2.34 $9.76 FY 2015/16 $51.71 $2.34 $9.76 FY 2014/15 $51.71 $2.34 $9.76 FY 2013/14 $51.71 $2.34 $9.76 142/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 6 of 8 Table II Special Maintenance Area 2 (Sleepy Hollow) Proposed FY 2019/2020 Road Maintenance $0 Contingency 0 Operations & Management 739 FY 2019/2020 Estimated Costs $739 Capital Improvements Collections / (Contributions) 9,785 Other Revenue Sources Collections / (Contributions) (600) FY 2019/2020 Estimated Charges $9,924 Estimated Capital Improvement Balance (As of June 30, 2019) $44,348 Estimated Capital Improvement Balance (After Fiscal Year 2019/2020 Capital Improvement Collections / Expenses)$54,133 Total Active Parcels in District 316 Total Parcels Levied 316 2019/2020 Applied Levy Rates Improved (per parcel) $42.00 Unimproved (per parcel) $24.00 Historical Applied Levy Rates Improved Unimproved FY 2018/19 $42.00 $24.00 FY 2017/18 $42.00 $24.00 FY 2016/17 $42.00 $24.00 FY 2015/16 $42.00 $24.00 FY 2014/15 $42.00 $24.00 FY 2013/14 $42.00 $24.00 143/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 7 of 8 APPENDIX A – DISTRICT BOUNDARY MAPS The Boundary Maps for the District have previously been submitted to the Clerk of the City in the format required under the Act and are, by reference, made part of this Report. The Boundary Maps are available for inspection at the office of the City Clerk during normal business hours. 144/252 2019/2020 City of Chino Hills Special Maintenance Areas 1 & 2 Page 8 of 8 APPENDIX B – 2019/2020 COLLECTION ROLL Parcel identification, for each lot or parcel, shall be the parcel as shown on the San Bernardino County Assessor's map for the year in which this Report is prepared. A listing of parcels assessed within this District, along with the assessment amounts, will be submitted to the City Clerk and by reference are made part of the final Report. Upon approval of the Engineer’s Annual Levy Report, and confirmation of the assessments, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll in Fiscal Year 2019/2020. 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 City Council. 145/252 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 SPECIAL MAINTENANCE AREAS 1 AND 2, SETTING THE DATE, TIME AND PLACE FOR CONFIRMATION OF ANNUAL ASSESSMENTS FOR SPECIAL MAINTENANCE AREAS 1 AND 2 WHEREAS, Chino Hills Special Maintenance Area 1, previously formed by the Board of Supervisors of the County of San Bernardino as County Service Area 70-CH, provides street sweeping services throughout Chino Hills; and WHEREAS, Chino Hills Special Maintenance Area 2, previously formed by the Board of Supervisors of the County of San Bernardino as County Service Area 48-A, provides road maintenance services in the Sleepy Hollow area of Chino Hills; and WHEREAS, on February 12, 2019, the City Council of the City of Chino Hills adopted Resolution No. 2019R-005 ordering an Engineer's Report for annual assessments for Special Maintenance Areas 1 and 2; 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 within Special Maintenance Areas 1 and 2, for the expenses 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 a special service charge upon each lot or parcel of land lying within the maintenance areas in proportion to the estimated benefits received from the existing maintenance and improvements. SECTION 2. That the Engineer's Report for the proposed Special Maintenance Areas 1 and 2 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. 146/252 2 of 3 SECTION 3. That the proceedings for the confirmation of the aforesaid charges contained in the Annual Report for the maintenance areas shall be taken under and in accordance with the State of California Government Code Section 25214.1 and the County of San Bernardino Ordinance No. SD-91-11 incorporated by reference into the Chino Hills Municipal Code. 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 Special Maintenance Areas 1 and 2 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 Special Maintenance Areas 1 and 2 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 Government Code Section 6066, 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 147/252 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 148/252