Loading...
HomeMy WebLinkAboutCC Resolution 10000 (Pt San Pedro Assessment Formation)RESOLUTION NO. 10000 A RESOLUTION APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN RAFAEL AND THE COUNTY OF MARIN CONCERNING THE FORMATION OF THE POINT SAN PEDRO ROAD IMPROVEMENT AND MAINTENANCE ASSESSMENT DISTRICT. WHEREAS, the City Council of the City of San Rafael initiated proceedings to form the Point San Pedro Maintenance Assessment District on August 4, 1997, and, WHEREAS, the proposed district encompasses properties located both within the incorporated City of San Rafael and the County of Marin, and WHEREAS, on August 4, 1997, the City of San Rafael entered into an agreement with Muni Financial Corporation to provide Assessment District Consulting Services, and WHEREAS, both the City of San Rafael and County of Marin desire to comply with the Streets and Highways Code as part of the district formation process. NOW, THEREFORE, BE IT RESOLVED that the San Rafael City Council does hereby approve the Memorandum of Understanding between the City of San Rafael and the County of Marin concerning the formation of the Point San Pedro Road �i U011 n Ir►n�r► Improvement and Maintenance Assessment District, and authorizes the City Manager to execute said Memorandum of Understanding. I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting on the City Council of said City held on Tuesday the 20th day of January 1998, by the following vote to wit: AYES: COUNCILMEMBERS: COHEN, HELLER, MILLER & VICE -MAYOR PHILLIPS NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: MAYOR BORO rt&&4_� Jeang M. Leoncini, City Clerk MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN RAFAEL AND THE COUNTY OF MARIN CONCERNING THE FORMATION OF THE POINT SAN PEDRO ROAD IMPROVEMENT AND MAINTENANCE ASSESSMENT DISTRICT This Memorandum of Understanding is made and entered into this 27th day of JANUARY. 1998, by and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and the COUNTY OF MARIN (hereinafter "COUNTY"). RECITALS WHEREAS, numerous homeowners residing along, adjacent to, or in close proximity to Point San Pedro Road, both within the City limits of the City of San Rafael and in the immediately contiguous unincorporated area of the County of Marin, have expressed a strong desire to form an assessment district for the purpose of improving and maintaining landscaping and medians along Point San Pedro Road; and WHEREAS, pursuant to the wishes of these citizens, CITY wants to form and to operate such an assessment district under the management, control and direction of CITY according to the provisions of the Streets and Highways Code; and WHEREAS, COUNTY understands, agrees and desires to allow CITY to form such a district including some areas contiguous to the CITY but within the COUNTY's jurisdiction; and WHEREAS, the Streets and Highways Code section 22500 et seq. ("Landscape and Lighting act of 1972") permits a public agency to form assessment districts for the purpose of improving and maintaining landscaping and median strips along roadways, and sections 22506 and 5115 permit one public agency to include in such a district, contiguous land areas within another agency's jurisdiction upon the approval of the legislative body of that other agency. AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: 1. PURPOSE OF AGREEMENT. The purpose of this Agreement is not to establish a Joint Powers Authority, but to clearly express the intent, agreement and understanding of the parties with regard to the formation, management and operation of an assessment district for the purpose of the improvement and maintenance of landscaping and median strips on Point San Pedro Road both inside the City limits of the City of San Rafael and inside the contiguous unincorporated areas of the County. 2. DEFINITIONS. A. "District" shall mean the Point San Pedro Road Improvement and Maintenance Assessment District, as is more particularly described in Exhibit "A", attached and incorporated herein. 1 r() PV B. "City" shall mean the City of San Rafael. C. "County" shall mean the County of Marin. 3. MOU COORDINATION. A. CITY. The City Manager shall be the representative of the CITY for all purposes under this Agreement and shall supervise all aspects of the execution of this Agreement. County B. COUNTY. The Admi ni stratQr shall be the representative of the COUNTY for all purposes under this Agreement and shall supervise all aspects of the execution of this Agreement. 4. DUTIES OF COUNTY. COUNTY shall perform the duties as follows: 1) COUNTY shall cooperate fully with CITY in CITY's efforts to effectuate the desire of both CITY and COUNTY citizens to form DISTRICT, including, but not limited to, taking all necessary actions under the Streets and Highways Code required by COUNTY for the formation and operation of DISTRICT by CITY. COUNTY shall pay 37% of the costs incurred to establish DISTRICT. 2) COUNTY shall have no management, operational or other obligation to, or authority over CITY or DISTRICT for the formation or operation of DISTRICT. 3) COUNTY shall pay 37% of the total general benefit derived from the DISTRICT, as determined in the initial and annual Engineer's Reports prepared by MUNI FINANCIAL, or subsequent years benefit assessment Engineer's Reports. 5. DUTIES OF CITY. CITY shall perform the duties as follows: 1) CITY shall initiate to conclusion the legal requirements of the Streets and Highways Code as modified by Proposition 218, for the formation of DISTRICT. CITY shall pay 63% of the costs incurred to establish DISTRICT. 2) Upon formation of DISTRICT, CITY shall be solely responsible for the implementation, management and operation of DISTRICT and its activities as permitted by, and pursuant to, the provisions of the Streets and Highways Code as modified by Proposition 218. 3) CITY shall pay 63% of the total general benefit derived from the DISTRICT, as determined in the initial and annual Engineer's Reports prepared by MUNI FINANCIAL, or subsequent years benefit assessment Engineer's Reports. 4) CITY shall, within ninety days of the end of the fiscal year, provide an annual accounting of the funds generated and expended by DISTRICT, in a format to be agreed upon by the financial officers of CITY and COUNTY. 2 6. TERM OF AGREEMENT. This Agreement shall remain in full force and effect for as long as DISTRICT remains in existence, unless terminated earlier by mutual agreement of the parties. In the event that DISTRICT is not formed because of a negative vote, or decision of CITY to terminate proceedings, this Agreement shall terminate on the earlier of either a City Council Resolution Repealing Notice of Intention to Establish District, or July 1, 1998. 7. ACCOUNTING AND AUDIT. Within ninety days of the end of a fiscal year, CITY, or its agent, shall provide to COUNTY an accounting of the DISTRICT's revenue and expenses for its operation during the previous year. Upon request and with reasonable notice, CITY shall permit COUNTY, or its agent, at COUNTY's sole expense, to audit DISTRICT's activities in connection with the performance of its duties under this Agreement. CITY shall fully cooperate with COUNTY or its agent in any such audit. 8. INDEMNIFICATION. A. COUNTY shall indemnify, release, defend and hold harmless CITY, its officers, agents, employees, and volunteers, against any claim, demand, suit, judgment, loss, liability or expense of any kind, including attorney's fees and administrative costs, arising out of or resulting in any way, in whole or in part, from any acts or omissions of COUNTY or COUNTY's officers, agents and employees in the performance of their duties and obligations under this Agreement. B. CITY shall indemnify, release, defend and hold harmless COUNTY, its officers, agents, employees and volunteers, against any claim, demand, suit, judgment, loss liability or expense of any kind, including attorneys fees and administrative costs, arising out of or resulting in any way, in whole or in part, from any acts or omissions of CITY or CITY's officers, agents and employees in the performance of their duties and obligations under this Agreement. 9. NOTICES. All notices and other communications required or permitted to be given under this Agreement, including any notice of change of address, shall be in writing and given by personal delivery, or deposited with the United States Postal Service, postage prepaid, addressed to the parties intended to be notified. Notice shall be deemed given as of the date of personal delivery, or if mailed, upon the date of deposit with the United States Postal Service. Notice shall be given as follows: TO CITY: Rod Gould, City Manager City of San Rafael 1400 Fifth Avenue P.O. Box 151560 San Rafael, CA 944915-1560 TO COUNTY: Martin J. Nichols, County Administrator County of Marin ..@Qpm 325. Marin Countv Civic Center ,�an Rafael. CA 94903 3 10. ENTIRF AGRFEMENT AMENDMENTS. The terms and conditions of this Agreement, all exhibits attached, and all documents expressly incorporated by reference, represent the entire Agreement of the parties with respect to the subject matter of this Agreement. The terms and conditions of this Agreement shall not be altered or modified except by a written amendment to this Agreement signed by the COUNTY and the CITY. If any conflicts arise between the terms and conditions of this Agreement, and the terms and conditions of the attached exhibits or the documents expressly incorporated by reference, the terms and conditions of this Agreement shall control. 11. APPLICABLE LAW. The laws of the State of California shall govern this Agreement. IN WITNESS WIIFRIEOF, the parties have executed this Agreement as of the day, month and year first above written. CITY OF SAN RAFAEL ROD GOULD, City Manager TTES t. JE LE N , City Clerk APPRO "0 GARY T. RAGGHIANTI, .(city Attorney COUNTY OF MARIN By:F�KR /-?.NSS Its: Presi ent, Marin Af County board OT Supervisors 4 Clerk APPROVED AS TO FORM: 4Hf(,1LCS J. IEEE, County Counsel PATRICK K. FAULKNER MuBIT A LA I PRELIMINARY ENGINEER'S REPORT POINT SAN PEDRO ROAD LANDSCAPING DISTRICT City of San Rafael and Marin County POINT SAN PEDRO LANDSCAPING DISTRICT (Median Landscaping Project) Based on a Memorandum of Understanding between the City of San Rafael and the County of Marin Corporate Oce 28765 Single Oak Drive Suite 200 Temecula, CA 92590 Tel: (909) 699-3990 Tel: (800) 755-6465 Fax: (909) 699-3460 Preliminary Report for Review this, January 26, 1998 MuniFinancial /NDIA IVlunicipalServices ♦ Armonk, NY ♦ Sacramento ♦ San Francisco ♦ Seattle Area ♦ Washington, D.C. Area www.muni.com ♦ W--4-PA1 Beach D�C�d�� JAN 2 6 1998 J ,y TABLE OF CON'TEN'TS ENGINEER'S CERTIFICATION.............................................................................................1 INTRODUCTION.................................................................................................................... 4 A. Overview...................................................................................................................4 B. Procedure for New Assessments (Recent Legislation)...............................................5 C. Agency's Plan............................................................................................................8 PART I — DESCRIPTION OF IMPROVEMENTS TO BE CONSTRUCTED ..................10 PART II — COST ESTIMATE OF IMPROVEMENTS TO BE CONSTRUCTED .............12 PART III — ASSESSMENT ROLL FOR IMPROVEMENTS TO BE CONSTRUCTED...............................................................................................13 PART IV — ASSESSMENT ROLL FOR OPERATION AND MAINTENANCE ..............22 PART V — ASSESSMENT DIAGRAM.................................................................................27 Description of the District Boundary ..........................................................................27 PART VI — ASSESSMENT ROLL........................................................................................28 APPENDIX A — DEBT SERVICE SCHEDULE..................................................................29 APPENDIX B — 1998/99 DISTRICT ASSESSMENT ROLL...............................................30 Point San Pedro Road Landscaping District Preliminary Engineer's Report Engineer's Certification Pursuant to a Memorandum of Understanding (MOU) between the City of San Rafael and the County of Marin, and in accordance with Resolution No. . adopted by the Marin County Board of Supervisors and Resolution No. , adopted by City Council of the City of San Rafael, the City Council of San Rafael will act as the legislative body for the proposed Point San Pedro Landscaping District which includes specific properties within the City of San Rafael and the unincorporated area of Marin County. Further, pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the Streets and Highways Code of California, and in accordance with the Resolution of Intention, being Resolution No. , adopted by the City Council of the City of San Rafael, County of Marin, State of California, in connection with the proceedings for Point San Pedro Landscaping District (hereinafter referred to as the "District"), I, Chris Wuerz, P.E., and Jim McGuire, the authorized representatives of MuniFinancial, the duly appointed Assessment Engineers, submit this Engineer's Report (hereinafter referred to as "Report") for the District consisting of six (6) parts as follows: PART I Description of Improvements to be Constructed This part contains a general description of the location and extent for the proposed works and improvements. Following formation of the District, the Agency will have prepared engineering plans and specifications in the detail necessary for the actual construction and installation of the improvements. These plans and specifications shall be on file in the office of the City Clerk of the City of San Rafael. PART II Cost Estimate of Improvements to be Constructed This part contains an estimate of the cost of the proposed improvements, including capitalized interest, incidental costs and expenses in connection therewith. Point San Pedro ..oad Landscaping District Preliminary Engineer's Report PART III Assessment Roll for Improvements to be Constructed This part consists of the proposed assessment of the total amount of the costs and expenses of the proposed improvements, as shown in Part II, upon the several lots, parcels, and subdivisions of land within the District, in proportion to the special benefits to be received by such lots, parcels, and subdivisions from said improvements. The proposed assessment upon each parcel is set forth upon the assessment roll filed herewith as Appendix B (under separate cover) and made a part hereof. PART IV Assessment Roll for Operation and Maintenance of the Improvements This part shows the proposed annual operation and maintenance assessment to be levied upon the several lots, parcels, and subdivisions of land within the District, in proportion to the special benefits to be received by such lots, parcels, and subdivisions from said improvements. The proposed assessment upon each parcel is set forth upon the assessment roll filed herewith as Appendix B (under separate cover) and made a part hereof. PART V Assessment Diaeram This part contains a map showing the boundaries of the District, and the dimensions of the lots, parcels, and subdivisions of land within said District, as the same existed at the time of the passage of the Resolution of Intention, is filed herewith and made a part of hereof, and part of the assessment. PART VI Assessment Roll This part contains a listing of the proposed assessments for each lot, parcel and subdivision of land within said District, as the same existed at the time of the passage of the Resolution of Intention, and is filed herewith and made a part of hereof. 2 This report is submitted on this MuniFinancial Assessment Engineers Christopher R. Wuerz R. C. E. # 50558 Point San Pedro Road Landscaping District Preliminary Engineer's Report CERTIFICATIONS day of , 1998. James A. McGuire Special District Services PRELIMINARY APPROVAL I, Jean Leoncini as City Clerk of the City of San Rafael, do hereby certify that the Assessments, together with the Diagram attached thereto, was preliminarily approved by the City Council of the City of San Rafael and filed in my office on the day of , 1998. Jean Leoncini City Clerk City of San Rafael FINAL APPROVAL I, Jean Leoncini, as City Clerk of the City of San Rafael, do hereby certify that the Assessments, together with the Diagram attached thereto, received final approval by the City Council of the City of San Rafael and filed in my office on the day of , 1998. Jean Leoncini City Clerk City of San Rafael 3 Point San Pedro ..oad Landscaping District Preliminary Engineer's Report Introduction A. Overview The City of San Rafael and the County of Marin have entered into a Memorandum of Understanding (MOU) for the authority and administration of the proposed Point San Pedro Landscaping District (hereinafter referred to as the "District"). The proposed improvements and the benefiting properties within the proposed District covers territory within both jurisdictions. The City of San Rafael will act as the lead agency (hereinafter referred to as the "Agency") upon joint approval by resolution of the Marin County Board of Supervisors and the San Rafael City Council. The San Rafael City Council (hereinafter referred to as the "Council") will act as the legislative body for the District. For Fiscal Year 1998/99, the Council has proposed the formation of the Point San Pedro Landscaping District. The Council proposes to annually levy special assessments on the County tax rolls in order to install, construct and maintain the improvements and renovation of the median islands located on Third Street and Point San Pedro Road between Union Street and Biscayne Drive. The Council further proposes to form the District and issue bonds to pay for the installation and construction of landscaping improvements within the existing medians, and to levy annual assessments to pay the debt service on the bonds, and the maintenance, services and operation of the improvements pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California (hereinafter referred to as the "1972 Act"); and the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code of California, beginning with Section 8500 (hereinafter referred to as the "Bond Act"); and in compliance with the substantive and procedural requirements of the California Constitution Article XIRD. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number by the Marin County Assessor's Office. The Marin County Auditor/Controller uses Assessor's Parcel Number to identify on the tax roll, properties assessed for special district benefit assessments. This Engineer's Report (hereinafter referred to as the "Report"), describes the District, including the planned improvements, the District diagram, an estimate of the principal amount of bonds to be issued, and the proposed estimated costs and assessments for Fiscal Year 1998/99. The assessments are based on the total estimated cost to construct and install all proposed improvements and maintain and service those improvements, including all incidental expenses that provide a special benefit to properties within the District. The improvements within the District and the corresponding costs are budgeted and assessed, including all proposed debt service on bonds, expenditures, deficits, surpluses, revenues, and reserves. An Engineer's Report will be presented to the Council each year 4 Point San Pedro Road Landscaping District Preliminary Engineer's Report and will describe the District, any changes to the District, and the proposed assessments for that fiscal year. B. Procedure for New Assessments (Recent Legislation) On November 5, 1996, California voters approved Proposition 218 by a margin of 56.5% to 43.5%. This Constitutional amendment (now Constitutional Article XHIC and XIIID) was the latest in a series of initiatives reducing the revenue -raising discretion of California local governments. The Proposition requires Beginning July 1, 1997, all new and existing assessments (with some exceptions) must conform with new substantive and procedural requirements. The major elements of the substantive requirements include: The assessment method of spread must ensure that all properties receiving special benefit from the services funded by the assessment are included in the assessment calculation. Properties owned by schools and other governmental agencies—previously exempt from some assessment now must be included in the spread calculation if those properties receive benefit from the improvements. • Costs related to "general" benefit must be specifically removed from the assessments. Only costs related to "special" benefit may be assessed. • The Agency must mail notice regarding assessments to all property owners. Each notice must contain a ballot for the property owner to indicate approval or disapproval of the assessment. After mailing the notices, the Agency must hold a public hearing. At the conclusion of the hearing, the Agency must tabulate the ballots, weighing each in proportion to the total amount of the assessment. The assessment may be imposed only if 50% or more of the weighted ballots returned support the assessment. (Prior to Proposition 218, an assessment could be imposed if less than a majority of landowners protested the imposition.) Assessments are defined as: `... any levy or charge upon real property by an agency for a special benefit conferred upon the real property. Assessment' includes, but is not limited to, `special assessment,' `benefit assessment,' `maintenance assessment'and `special assessment tax. '"Article XIIID Section 2b Assessments are distinct from the regular one percent (10/6) property tax and property tax debt overrides in that assessment rates are not levied on an ad valorem basis, but rather on a benefit basis. While most often collected on the property tax rolls, assessments are also distinct from parcel taxes in that assessments are typically adopted under a protest procedure, rather than a voter referendum. 5 Point San Pedr%, Aoad Landscaping District Preliminary Engineer's Report The 1972 Act provides that assessments may be apportioned by any formula or method which fairly distributes the net amount to be assessed, among all assessable parcels in proportion to the estimated benefits to be received by each such parcel from the improvements. The Proposition does not change the use or requirements of the 1972 Act, however it does bring to light some very specific issues that must be addressed. Pursuant to the 1972 Act, the legislative body establishes and determines the "estimated benefit received" by each parcel from the improvements. Historically, the courts have not attempted to intervene in matters related to this issue, and have upheld that the legislative body is ultimately responsible for establishing benefit. However, the Proposition specifically states: "In any legal action contesting the validity of any assessment, the burden shall be on the agency to demonstrate that the property or properties in question receive a special benefit over and above the benefits conferred on the public at large and that the amount of any contested assessment is proportional to, and no greater than, the benefits conferred on the property or properties in question. "Article XIIID Section 4f Therefore, the Agency now has a greater responsibility to identify the benefits conferred on each parcel, and more closely quantifying the nexus. The Proposition defines special benefit as `:.. a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute `special benefit. " Article XIIID Section 21 This does not necessarily mean that "special benefit" cannot be "estimated benefit", but the more subjective the nexus is between an assessment and benefit, the more difficult the nexus is to defend. The Proposition is very clear that the agency must identify all parcels which have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit to each parcel shall be determined in relationship to the entirety of the public improvement or the maintenance and operation expenses being provided, and "Only special benefits are assessable, and an aVencv must separate the 'Veneral benefits from the special benefits conferred on a parcel. Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that such publicly owned parcels in fact receive no special benefit." Article XIIID Section 4a (Emphasis added) 6 Point San Pedro Road Landscaping District Preliminary Engineer's Report The proceedings for approving an assessment for a 1972 Act district have also changed. Prior to Proposition 218, a public hearing was held to listen to input and protests of the property owners, (mailed noticing and an additional public meeting were necessary for increased assessments or formations only). A protest of 50% was required to stop the imposition of an increase or formation. The Proposition does not change the general assessment procedures such as the preparation of a detailed engineer's report, mailed notices and the public hearing, but it does require the inclusion of a balloting process as part of the protest procedure. All notices must include a ballot for return to the agency indicating support or opposition to the assessment, (this includes ratification of all subsequent increases). Property owners will no longer have to submit protests in excess of 50% to stop its imposition, the district and the assessment must have a 50% affirmative vote. Measuring the vote (protest) has also changed, with the votes now weighted according to each parcel's proportional share of the total assessment. Similar to pre -Proposition, at the public hearing the Agency shall consider all protests against the proposed assessment, but now ballots must be tabulated. "The agency shall not impose an assessment if there is a majority protest. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. " Article XIIID Section 4e Pursuant to the 1972 Act in accordance with the California Constitution Article XHID, notices shall be mailed to all benefiting parcels subject to an assessment for special benefits indicating the proposed special benefit assessment and the time and place of the public hearing to be held before the Council. At the hearing, the Council will allow the public an opportunity to be heard regarding the District and assessments. Following consideration of all public comments, written protests, and tabulation of property owner protest ballots, the Council will determine if a majority protest exists in accordance with Article XIIID. If a majority protest does not exist, the Council may then order the formation of the District an the levy and collection of assessments pursuant to 1972 Act. In such case, the assessment information will be submitted to the Marin County Auditor/Controller. The County Auditor/Controller will include the assessments on the property tax roll for Fiscal Year 1998/99. The following table summarizes the changes in the assessment district formation process resulting from the passage of Proposition 218. 7 Point San Pedri, _.oad Landscaping District Preliminary Engineer's Report Summary of Assessment District Process Changes Pre -Prop. 218 Documentation engineer's report Basis of Assessment benefit "Voters" property owners Notice Requirements mailed notice Form of Protest petition Basis of Council Approval insufficient opposition Opposition Threshold majority of all owners Weighting of Protest land area Council Authority could override protest C. Agency's Plan Post -Prop. 218 engineer's report special benefit (no general benefit) property owners mailed notice and ballot mailed ballot insufficient opposition majority of returned ballots assessment amount cannot override protest At the request of several property owners within the proposed District, and with the expressed support of sixteen neighborhood associations, the Agency is considering the formation of a landscaping and lighting district to fund upgrade, renovation and landscaping of twenty-nine existing median islands on Third Street and Point San Pedro Road between Union Street and Biscayne Drive. The primary purpose of the improvements is to enhance the area and the quality of life for those properties associated with the improvements, thereby providing a special enhancement of property values. The Council's plan includes: • The proposed formation of the Point San Pedro Landscaping District; • Issuance of bonds to finance the construction and installation of the improvements; s To annually levy special assessments in order to pay debt service on the bonds, the costs related to maintenance, operation, servicing, and administration of the improvements. The estimated costs of construction and installation of the improvements are greater than can be conveniently raised from a single annual assessment; therefore, it is determined that the estimated costs of those improvements, shall be paid using bond proceeds. The debt service to be repaid on the bonds shall be funded through annual assessments levied and collected in installments, proposed to cover a period of twenty (20) years. According to the 1972 Act, the amount of debt service to retire the bonds shall not exceed the amount of Point San Pedro Road Landscaping District Preliminary Engineer's Report revenue estimated to be raised from assessments over thirty (30) years. In conjunction with the assessments for debt service, the on-going operation and maintenance of the improvements shall be funded through annual operation and maintenance assessments (O & M), levied and collected annually along with the debt service assessment. All funds collected each year shall be used and dispersed first for the debt service on the bonds and secondly for the annual maintenance and operation of the improvements. To this extent the entire annual assessment for each parcel (debt service and O & M) is pledged to repay debt service on the bonds. For a detailed Debt Service Schedule, please refer to Appendix A. 0 Point San Pedi .Coad Landscaping District Preliminary Engineer's Report Part I — Description of Improvements to be Constructed The proposed plan and location of the median islands to be landscaped, upgraded, and renovate through the construction and installation of landscaping improvements and related facilities on Third Street and Point San Pedro Road are generally described in this section. Detailed engineering plans and specifications for the improvements will be prepared by the Agency in the detail necessary for the actual construction and installation of the improvements following the formation of the District. These plans and specifications shall be on file in the office of the City Clerk of the City of San Rafael once they have been completed. There are currently twenty-nine (29) existing median islands within the boundaries of the District that are proposed to be improved. These median islands are located on Third Street and Point San Pedro Road between Union Street and Biscayne Drive and comprise approximately 156,261 square feet of surface area. The following is a listing of the medians on Third Street and Point San Pedro Road proposed to be improved: 1. Union Street to San Rafael High School parking lot 2. San Rafael High School parking lot to middle of parking lot 3. Middle of San Rafael High School parking lot to Embarcadero Way 4. Embarcadero Way to Mooring Road 5. Mooring Road to Marina Boulevard 6. Marina Boulevard to Aqua Vista Drive 7. Aqua Vista Drive to Royal Court 8. Royal Court to Porto Bello Drive 9. Porto Bello Drive to Summit Avenue 10. Summit avenue to Margarita Drive 11. Margarita Drive to Bay Way 12. Bay Way to Bellevue Avenue 13. Bellevue Avenue to Manderly Road 14. Manderly Road to San Pedro Elementary School 15. San Pedro Elementary School to San Pedro Cove 16. San Pedro Cove to Lochinvar Drive 17. Lochinvar Drive to Loch Lomond Shopping Center 18. Loch Lomond Shopping Center to Bayview Drive 10 Point San Pedro Road Landscaping District Preliminary Engineer's Report 19. Bayview Drive to Beach Road 20. Beach Road to Marine Drive 21. Marine Drive to Main Drive 22. Main Drive to Knight Drive 23. Knight Drive to Fire Station 5 24. Fire Station 5 to Peacock Drive 25. Peacock Drive to Riviera Drive 26. Riviera Drive to McNear Brickyard 27. Cantera Way (McNear's Beach) to Marin Bay Park 28. Marin Bay Park to San Marino Drive 29. San Marino Drive to Biscayne Drive The proposed construction and installation of improvements within the twenty-nine medians include but are not limited to: • the removal of existing median material; 0 grading of surface area and import of soil and plant material; • repair or replacement of damaged curbs and gutters; the planting and installation of plant material, including turf, ground cover, trees, shrubs and plants; the installation of irrigation and drainage systems, including all meters, fixtures, pipe, conduits and electrical supply; o the installation of hardscape including rocks, paving stones, masonry work, ornamental structures, signage and other appurtenant facilities. The above improvements include all designs, labor, material, supplies and equipment necessary or useful for the construction and installation of the improvement or other improvements and facilities permanently or temporarily constructed by the District to accomplish the improvements. 11 Point San Pedr,. _.oad Landscaping District Preliminary Engineer's Report Part II — Cost Estimate of Improvements to be Constructed A summary of costs for the construction of the proposed improvements and related facilities are listed below. These costs include but are not limited to: construction and installation of all median landscaping; construction for all auxiliary work; design and construction engineering; inspection and plan checks; district formation and financing costs, which include capitalized interest, administrative and legal support. Budget Item Estimated Design engineering Cost Construction Costs 7,017 Demolition and rough grading $84,200 Landscape Material 210,500 Hardscape 63,150 Irrigation, drainage and electrical systems 42,100 Masonary work 21,050 Subtotal Construction 421,000 Construction Contingencies (15%) 63,150 Total Construction $484,150 Incidental Expenses Design engineering $16,374 Plan check 7,017 Soil inspection 9,357 Construction inspection and administration 14,035 Subtotal Incidental Expenses 46,783 Incidental Contingencies (15961) 7,017 Total Incidental Costs $53,800 Total Construction Cost $537,950 Assessment Financing Costs Bond Reserve Fund (2.00°/x) $12,000 Capitalized Interest (0.00%) 0 Bond Printing 0 Assessment Engineering 15,000 Bond Counsel 15,000 Unerwriter's Discount (2.50%) 15,000 City Administration (0.00%) 0 Printing, Auditor's Record, Legal, Publication, Misc. 4,587 City as Paying Agent 500 Credit Interest Earnings on Bond Proceeds 0 Total Assessment Financing Costs $62,087 Total Amont To Bond $600,037 12 Point San Pedro Road Landscaping District Preliminary Engineer's Report Part III — Assessment Roll for Improvements to be Constructed This part shows the proposed assessment of the total estimated costs of works of improvements to be constructed and installed, shown in Part II of this report and summarized below, to be levied upon each lot, parcel, or subdivision of land receiving special benefit within the District. Assessments have been levied in proportion to the estimated special benefit that each parcel receives from the construction of the improvements to be financed by the District based upon the method and formula of assessment as presented herein. A listing of each parcel of land, and the proposed assessment apportioned to each parcel of land is included in the Assessment Roll in Appendix B. For current ownership of each parcel of land, reference is made to the most recent equalized tax roll of the County of Marin, which is by reference made part of this report. Preliminary Confirmed Amount Amount Estimated Cost of Construction Obligation $484,150 Estimated Incidental Costs and Expenses 53,800 Estimated Total Construction Costs Obligation 537,950 Capitalized Interest 0 Bond Issuance Costs 0 Reserve Fund 12,000 Bond Discount (2.50%) 15,000 Bond Administration 35,087 Amount to Assessment $600,037 The Agency has given notice that bonds will be issued to represent all unpaid assessments. The interest rate of such bonds will not exceed the current legal maximum rate of 12 percent per annum. The bonds will be issued in the manner and form as provided in the Improvement Bond Act of 1915, which is Division 10 of the Streets and Highways Code of the State of California. There will be no more than 20 installments of the principal of such bonds, the last installment of which shall mature a maximum of 19 years from the second day of September, next succeeding 12 months from the bond date. The total proposed assessment upon each individual parcel of land within the District for the construction and installation of the improvements is shown on the assessment Roll which is included in Appendix B of this report. The assessment number as shown on the 13 Point San Pedro ..oad Landscaping District Preliminary Engineer's Report Assessment Roll for each individual parcel of land corresponds to the Marin County Assessor's Parcel Number and is shown on the Assessment Diagram that is included in Part IV of this report. The Assessment Diagram shows the proposed District as well as the boundaries and dimensions of the respective lots, parcels, and subdivisions of land within the District. Each lot, parcel, and subdivisions of land respectively is identified by the Assessor's Parcel Number established by the Count of Marin as they existed at the time of the passage of the Resolution of Intention. Pursuant to the provisions of law, the costs and expenses of the improvements to be performed in the District upon the parcels of land in the District benefited have been assessed in direct proportion and relation to the special benefits to be received by each said parcels. The following describes the method and formula of apportionment for the improvement assessments. Method and Formula of Assessment Spread The assessments required to be set forth in this Report shall be deemed to be final assessments levied under the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California (hereinafter referred to as the "1972 Act"). Pursuant to the 1972 Act and in compliance with the substantive and procedural requirements of the California Constitution Article XHID, the costs of the District must be apportioned by a formula or method which fairly distributes the net amount to be assessed, among all assessable parcels in proportion to the special benefits to be received by each such parcel from the improvements. However, the statutes do not specify the method of formula that should be used to apportion the assessments in any special assessment district proceedings. The Agency has retained the firm of MuniFinancial for the purpose of assisting the Agency in making an analysis of the facts in the District and recommending to the Council the apportionment of the assessment obligation. The method of apportionment described herein is applied to each property within the District that receives special benefit from the construction and installation of the improvements. To apportion the assessment to each parcel in direct proportion to the special and direct benefit it will receive from the improvements, an analysis has been made to initially identify the benefits that the improvements will render to properties within the boundaries of the District and to determine that the properties will receive a direct and special benefit distinct from that of the general public. The Agency has determined that the improvements would be in the best interest of the properties within the District and are proposed specifically for the special benefit and 14 Point San Pedro Road Landscaping District Preliminary Engineer's Report enhancement of properties within the District. Furthermore, all properties, developments and subdivisions within the boundaries of the District directly access or routinely utilize Third Street and Point San Pedro Road, and that all such properties, developments and subdivisions are by location and proximity part of a development or subdivision that is associated with the improvements to be constructed. Specifically, the proposed improvements will provide the following special benefits to properties within the District: • Enhanced desirability of properties within the District. • Improved aesthetic appeal to properties within the District providing a positive representation of the area. • 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 reduced noise and air pollution. • Reduced personal property loss and vandalism resulting from enhanced surroundings. • Increased promotion of business and business opportunities resulting from a positive representation of the area. • The special enhancement of property values, which result from the foregoing benefits. The improvements, as outlined in Part II of this report, are proposed for the upgrade, renovation, and landscaping of existing median islands on Third Street and Point San Pedro Road. The improvements are for the benefit of properties within the District. The Agency has determined that while the median islands as they currently exist benefit the general public by providing improved traffic safety and circulation, the proposed improvements will enhance neither traffic safety nor circulation. However, the Agency recognizes that the proposed enhancements will provide some benefit to the public at large. The relative dollar amount associated with this benefit has been determined to be equal to the percentage of unassessed property within the District. Of the 2,090 acres within the District, 270 acres were deemed to receive no special benefit, representing 13% of the total acreage. To determine the dollar amount associated with general benefit, this percentage is applied to both the annual debt service costs and the annual maintenance costs. Accordingly, the general benefit portion of the annual $56,001 debt service is $7,280, and the general benefit portion of the annual $89,775 maintenance cost is $11,671. This amounts to an annual assessment reduction of $2.42 for debt service, and $3.94 for maintenance. The debt service reduction is effective only during the 20 -year debt repayment period— after which only the maintenance reduction is effective. 15 Point San Pedru _.oad Landscaping District Preliminary Engineer's Report The net amount to be assessed upon parcels within the District is apportioned by a formula and method that fairly distributes the net amount to be assessed among all assessable parcels in proportion to the special benefits to be received by each parcel from the improvements. In order to apportion the assessments in direct proportion with the special and direct benefits that each parcel will receive from the improvements, an in-depth analysis was made and several factors were used, as more fully explained hereinafter under "Method of Assessment Apportionment". METHOD OF ASSESSMENT APPORTIONMENT The improvements to be financed by the District provide an esthetic value to each property, and an enhanced quality of life for property owners and business within the District both now and in the future. In order to accurately derive the amount of special benefit to be received by each lot or parcel in the District and thereby determine the assessment obligation for each lot or parcel, it is necessary to consider the types of properties within the District and their relationship to the improvements and each other. Therefore, the basis of calculating special benefit within the District utilizes a weighting factor called an Equivalent Dwelling Unit (EDU). A parcel's EDU is based on both the existing development and potential development of the property. The following describes the methodology and formulas used to arrive at a parcel assessment obligation for the construction and installation of the improvements within the District. The Single Family Residential parcel has been selected as the base unit for calculation of assessments and is defined as one (1) Equivalent Dwelling Unit (EDU). The EDU calculated for all other property types or parcel classifications is based on the special benefit received from the improvements as compared to the special benefit received by a Single Family Residential property. Single Family Residential Property (SFR and SFV): A single family residential property is defined as any property identified by the Marin County Assessor's Office with a residential land use or known by the Agency to have a residential land use, that has been developed with a single family dwelling unit or may be developed as a single family dwelling unit. This land use includes all vacant residential properties (SFV) that are restricted to the development of a single family dwelling unit, and all developed single family dwellings (SFR), including mobile homes, condominiums and estates. Multiple residential parcels that are identified as Bifurcated lots and Contiguous lots are treated as one single family residential property. 16 Point San Pedro Road Landscaping District Preliminary Engineer's Report • A Bifurcated lot is defined as one lot split into two or more separate parcels by a tax rate area code. For purposes of calculating the assessment obligation, Bifurcated parcels are treated as one lot, and the entire assessment obligation is apportioned to only one of the parcels (the un -assessed parcel is identified as exempt). • A Contiguous lot is defined as two or more adjacent residential parcels with the same owner, that together may only be developed as one residential lot. Due to zoning or topography, development of some residential parcels is restricted, and often two or more adjacent parcels are considered one lot, and only one residential unit may be developed on the properties. For purposes of calculating the assessment obligation, parcels identified as contiguous properties are treated as one lot, and the entire assessment obligation is apportioned to only one of the parcels (the un -assessed parcel is identified as exempt). Multi -Family Residential Improved Property (MFR): A multi -family residential improved property is defined as any property identified by the Marin County Assessor's Office with multiple residential units associated with one parcel or known by the Agency to have multiple residential units. This land use designation includes all developed residential properties that have two or more dwelling units associated with the property including apartments. Multi -family residential improved property (MFR) are equated to the SFR land use based upon the number of dwelling units per parcel. Studies have consistently shown that the average MFR'S relative size and population density compared to the typical size SFR is 30% to 50% less per unit and their impact and benefits from infrastructures, and average trip generation are similar. These factors indicate that the special benefit MFR properties would receive from the improvements is on average 60% of an SFR per unit. Additionally, by virtue of their reduced size, each multi -family residential unit has less incremental property value per unit than a single family residential property and therefore less benefit related to the special enhancement of property values per unit. A review of parcel data within Marin County finds that the assessed valuation of MFR properties do not increase proportionately as the number of units increase, which supports a reduced weighting of special benefit for MFR properties as compared to an SFR property. Based on the preceding analysis, it has been determined that the proportionate special benefits that multi -family residential properties (MFR) receive is 60% of a single family residential property (SFR) per unit, or 0.6 EDU per unit. Commercial Improved Property (COM, GLF, IND): 17 Point San Pedru x(oad Landscaping District Preliminary Engineer's Report A commercial improved property is defined as any property identified by the Marin County Assessor's Office with a commercial (non-residential) land use that is improved or used commercially, or known by the Agency to have a similar use. This land use designation includes all developed commercial properties (such as retail stores, restaurants, and offices); and properties with specific commercial or recreational use, including but not limited to golf courses, marinas and quarries. All commercial improved land uses are equated to the SFR based upon parcel size (net -acreage). A review of the County land use records shows that the average SFR parcel size within the District is 1/4 acre. Therefore, the factor of 4.0 EDU's per acre is used as the basis of comparison, and each Commercial parcel is assigned 4.0 EDU's per acre or fraction thereof. To more accurately reflect the special benefit that some parcels receive from the improvements, an additional adjustment in the EDU's assigned to commercial properties is required. Typically, the average density of development is significantly lower on larger parcels, even if it is assumed that the owner of land has developed or will ultimately develop that land to receive the maximum economic return from the land based upon allowed intensities of development. Due to the nature of the improvements and the special benefits that properties receive from the improvements, it is reasonable to conclude that there is a limit to the special benefits and special enhancement of property values that any one parcel will receive from the improvements. Therefore, a maximum number of assessable acres (benefiting acres) for any given land use has been limited to five acres. Thus, for commercial properties the maximum EDU assigned to any one parcel is 20.0 EDU (5.0 acres x 4.0 EDU/acre). Churches (CHR): Church properties include those properties identified by the Marin County Assessor's Office or known by the Agency to be developed properties used as a Church. Similar to commercial properties, the special benefits these properties receive from the improvements are equated to the SFR based upon parcel size (net -acreage), however, it is reasonable to conclude that church properties receive less proportional special benefit from the construction and installation of the improvements than commercial properties. This conclusion is based on the following considerations: fewer weekly trip generations; various tax exemptions result in reduced net assessed valuation of church properties as compared to similar size commercial properties and therefore their special enhancement of property values; and the average density of development per acre is typically less. Therefore, the factor of 2.0 EDU's per acre is used as the basis of comparison, and each Church parcel is assigned 2.0 EDU's per acre or fraction thereof. Similar to commercial properties, a maximum number of assessable acres (benefiting acres) for any given parcel has been limited to five acres. Thus, for church properties the maximum EDU assigned to any one parcel is 10.0 EDU (5.0 acres x 2.0 EDU/acre). Vacant -Undeveloped Properties (MFV, CMV): 18 Point San Pedro Road Landscaping District Preliminary Engineer's Report Vacant -undeveloped properties are defined as any property identified by the Marin County Assessor's Office with no structural improvements associated with a parcel or known by the Agency to be vacant that may be developed of commercial use or as more than one single family residential property. This land use designation includes all commercial vacant properties (CMV) and multiple family residential vacant (MFV) properties. Multiple family residential vacant WV) properties are further defined as residential properties that may be subdivided into more than one single family residential parcel. All vacant -undeveloped land uses are equated to the SFR based upon parcel size (net -acreage). A review of the County land use records shows that the average SFR parcel size within the District is 1/4 acre. Therefore, the factor of four EDU's per acre would be applicable if the properties were developed. However, since the properties are not developed, their special benefit from the improvements (special enhancement of property values) is not proportional. Additionally, the future development of these properties may be less than four dwelling units per acre, and therefore as a basis of comparison, these properties are assigned 1.0 EDU per acre or fraction thereof, with a minimum of 1.0 EDU per parcel which is consistent with a subdivided single family vacant residential property. Exempt Property (NON): Non-taxable properties such as government-owned land, public utility -owned property, and land principally encumbered with public right-of-ways are commonly not assessed for local improvements. However, California Constitution Article XIM has clearly established that these properties may not be excluded from the assessments unless they derive no special benefit. As noted previously, the special benefits properties receive from the proposed landscaping improvements are directly related to aesthetics and special enhancement of property values. Each of the properties within the District was carefully evaluated; and based on land use or potential land use it has been determined that all existing government-owned land, public utility -owned property, land principally encumbered with public right-of-ways, common areas, and parcels that may not be developed due to size or zoning restrictions, will be unchanged from the construction and installation of the improvements. The proposed improvements provide no special enhancement of property values for these types of properties and therefore they receive no special benefit from the improvements. Therefore, these types of properties are exempt from the special benefit assessments. A list of the various land use classifications discussed in the preceding and their corresponding EDU calculations as they apply to debt service are shown in the following table. 19 Point San Pedt. Road Landscaping District Preliminary Engineer's Report LAND USE Single Family Residential Improved Single Family Residential Vacant Bifurcated Residential Lot (Two or more parcels) Contiguous Residential Lot (Two or more parcels) Multi -Family Residential Improved Multi -Family Vacant Residential (Applies to Properties Greater Than One Acre) Commercial Vacant (Parcels Less Than One Acre Are Asses At 1.0 EDU) Churches Commercial Developed Industrial (Quarry) Golf Courses Exempt Properties (No Special Benefit) IEQUIVALENT DWELING UNIT FORMULA 1.0 EDU/Dwelling Unit or Parcel 1.0 EDU/Parcel 1.0 EDU/ Lot—Only one parcel is assessed 1.0 EDU/ Lot—Only one parcel is assessed 0.6 EDU/Dwelling Unit 1.0 EDU/Acre, Maximum 5.0 EDU 1.0 EDU/Acre, Maximum 5.0 EDU 2.0 EDU/Acre, Maximum 10.0 EDU 4.0 EDU/Acre, Maximum 20.0 EDU 4.0 EDU/Acre, Maximum 20.0 EDU 4.0 EDU/Acre, Maximum 20.0 EDU Not Assessed For purposes of spreading the special benefit of the improvement construction costs to each parcel, the number of EDU's for each lot or parcel shall be based on the method of apportionment previously described, which is in turn based on the land use and zoning designation determined for each parcel at the time the Resolution of Intention is adopted by the Council. The following formulas are applied to each parcel to determine each parcel's specific assessment obligation for the construction and installation of the improvements. or Total Amounito Assess = Total AssessmentLien Per EDU (Rate) Total EDU (All benefitinparcel) $56,000 = $1864 3,00439 Total Assessment Lien per EDU (Rate) x Parcel's Individual EDU — Parcel's Assessment Lien 20 Point San Pedro Road Landscaping District Preliminary Engineer's Report Thus, for a parcel consisting of a single-family residential unit, the Parcel's Assessment Lien would be: $18.64x1.0=$18.64 Appeals / Modifications It is recognized that the use codes in the County Assessor's roll for individual properties may not be consistent with actual use or with the intent of this proposed methodology. Therefore, it is important to provide for the modification or adjustment of individual charges for certain property owners, pending final confirmation of the assessments. It is recommended that the Agency develop and implement administrative procedures for review of assessments on individual properties during the assessment proceedings, and that the Finance Director or their designee be authorized to make adjustments in the assessments, where appropriate, consistent with the methodology for determining the assessments as described in this report, prior to confirmation of the assessment. 21 Point San Pedro ..oad Landscaping District Preliminary Engineer's Report Part N — Assessment Roll for Operation and Maintenance Pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California (hereinafter referred to as the "1972 Act"), and following the levy of assessments under the 1972 Act to pay, in whole or in part, the costs and expenses of constructing and installing the improvements, it is the intention that the Agency prepare and approve an estimate of expenditures required for the annual operation and maintenance of the improvements and collect the same by special assessment upon the several lots, parcels and subdivisions of land within the District. Definition of Operation and Maintenance For purposes of this District, "operation and maintenance" shall generally include all costs of personnel, utilities, purchase or lease of maintenance equipment, weed abatement, rodent control, maintenance and repair of all improvements, graffiti removal, repair, replacement and refurbishing of the improvements and other applicable amenities, and applicable administrative and operational costs incurred annually as determined by the Council to maintain the desired level of special benefit to the assessed parcels within the District. Operation and Maintenance Benefit The annual operation and maintenance of the improvements will continue to ensure that parcels within the District will continue to receive a special benefit from the improvements. Therefore, the annual operation and maintenance benefit is directly related to the initial improvements' special benefit. As discussed in the previous section, the general benefit portion of both the debt service and the maintenance cost represents 13% of the totals. Based on this factor, the Agency's annual contribution toward the operation and maintenance of the District to fund the general benefit portion is estimated at $11,671. Calculation of the Annual Operation and Maintenance Assessment The annual maintenance benefit formula is directly related to the benefit units (Equivalent Dwelling Units) used for calculating the assessment for the construction and installation of the improvements. All other properties will be assessed for operation and maintenance according to the method of apportionment described in Part III of this report. The annual Operation and Maintenance Equivalent Dwelling Units (O & M EDU) shall be calculated annually using the same methodology and formula described in Part III of this report, accept that: • The EDU's for each parcel shall be recalculated each year based on any development, land use or specific parcel changes which have occurred; and, • The special benefit calculation applied to all vacant parcels (single family vacant parcels, multi -family vacant parcels and commercial vacant parcels) shall be calculated 22 Point San Pedro Road Landscaping District Preliminary Engineer's Report at one-half the EDU calculated for the initial improvements, until such time the parcels are developed. The method of calculating the assessment for the construction and installation of the improvements were based on both the existing land use of each parcel as well as the potential land use of each parcel. To this extent the special benefit calculation applied to all vacant parcels for the construction and installation of the improvements reflected both the existing parcel development as well as the future development of these parcels. For the annual operation and maintenance of the improvements, these parcels shall be assessed at one-half the EDU calculated for the initial improvements. Therefore, a single family vacant lot will be assessed at 0.5 EDU, multi -family vacant parcels and commercial vacant parcels will be assessed at 0.5 EDU per acre. The total number of Operation and Maintenance Equivalent Dwelling Units for Fiscal Year 1998-99 is 2,955.92 EDU's. The assessment rate per EDU is calculated by dividing the total annual Operation and Maintenance Budget "Balance to Levy" by the total number of EDU's in the District each year. The number of EDU's may vary year to year based upon development and land use changes in the District. A list of the various land use classifications and their corresponding EDU calculations as they apply to operation and maintenance assessment are shown in the following table. LAND USE (Single Family Residential Improved (Single Family Residential Vacant (Bifurcated Residential Lot (Two or more parcels) (Contiguous Residential Lot (Two or more parcels) Multi -Family Residential Improved (Multi -Family Vacant Residential (Applies to Properties Greater Than One Acre) (Commercial Vacant (Parcels Less Than One Acre Are Asses At 1.0 EDU) Churches ICommercial Developed (Industrial (Quarry) Golf Courses Exempt Properties (No Special Benefit) EQUIVALENT DWELING UNIT FORMULA 1.0 EDU/Dwelling Unit or Parcel 0.5 EDU/Parcel 1.0 EDU/ Lot—Only one parcel is assessed 1.0 EDU/ Lot—Only one parcel is assessed 0.6 EDU/Dwelling Unit 0.5 EDU/Acre, Maximum 2.5 EDU 0.5 EDU/Acre, Maximum 2.5 EDU 2.0 EDU/Acre, Maximum 10.0 EDU 4.0 EDU/Acre, Maximum 20.0 EDU 4.0 EDU/Acre, Maximum 20.0 EDU 4.0 EDU/Acre, Maximum 20.0 EDU Not Assessed For purposes of spreading the special benefit of the operation and maintenance of the improvement costs to each parcel, the number of EDU's for each lot or parcel shall be 23 Point San Pedrt- _.oad Landscaping District Preliminary Engineer's Report based on the method of apportionment previously described, which is in turn based on the land use and zoning designation determined for each parcel at the time the assessments are submitted to the County for collection. Note that the total EDU counts for the bonded and operation and maintenance portions of the assessment are not the same. (3,004.39 EDU's for the bonded portion, and 2,955.915 EDU's for the operation and maintenance portion.) This is due to the reduced factor applied to vacant (undeveloped) parcels for the operation & maintenance assessment, as discussed earlier. The following formulas are applied to each parcel to determine each parcel's specific annual operation and maintenance assessment of the improvements. Total Balanceto Levy = Total 0& M AssessmentPer EDU (Rate) Total EDU (All benefitinparcel) or $70,824 = $23.96 2,955915 (See the table on the following page for the operations and maintenance budget detail.) Total O&M A ssessment per EDU (Rate) xParcel's Individual EDU = Parcel's O&M A ssessment Thus, for a parcel consisting of a single-family residential unit, the Parcel's O&M Assessment would be: $23.96 x 1.0 = $23.96 The annual Operation and Maintenance costs for the District have been estimated based on the proposed improvements and the annual maintenance costs associated with similar type improvements. The estimated annual operation and maintenance costs associated with the improvements are shown on the following budget table. 24 Point San Pedro Road Landscaping District Preliminary Engineer's Report Median Landscaping O & M District Description Proposed Fiscal Year 1998-99 Maintenance Costs Landscape Maintenance (Contract) $40;000 Materials and Supplies 5.000 Utilities Electricity 5.000 Water 10.000 Contineency 3_.000 Miscellaneous Exoenses 521— Direct Subtotal T 413.500 ADMINTCTR A -MO C OSTc Personnel and Staffme $7.`00 Engineering 6.182 Debt Administration 4.500 Professional Fees 300 CounryAdministration Fee (3% of Levy) 2.768 Miscellaneous Expenses 750 Administrative Subtotal 22,000 t P14Y RR F AKtI(' V N Total Direct and Admin. Costs $85,500 Operatine Reserve Collection 4.275 (Sub -Total) Levy Collection 89.775 Beginning Balance (Surplus) 0 *O & M General Benefit Contributions 11,671 Leroy Reduction (Sub -Total) 11,671 O & M Levy Amount $78.104 "Debt Service General Benefit Contributions 7.280 Balance to Lew $70.824 nJS�MTrJ_SJA T7gTirC Total Parcels 3.007 Total Parcels Levied 2,766 Total Equivalent Dwelling Units (EDU) 2.955.915 Maximum Rate per EDU (Allowed for O & NO 0 26.421 Levy Rate Applied per EDU " Represents an annual contribution from the Agency toward the operation and maintenance of the improvements. *'F Represents an annual contribution from the Agency toward the bond debt service of the improvements comprising the General Benefit portion of the costs. The "Levy Rate Applied" represents the Maximum Rate per EDU allowed for O & M minus an adjustment for the Agency's debt service contribution resulting in a reduced O & M assessment until the bonds have been paid. 25 Point San Pe&, Road Landscaping District Preliminary Engineer's Report It should be noted that, as the table above reflects, the entire general benefit contribution from the Agency is applied to the annual operation and maintenance element of the total assessment. This is due to the restrictive nature of California Law with respect to the incurrence of debt. Thus, while the general benefit amount has been calculated based on both the maintenance cost and the proposed debt service costs, the actual reductions in the annual levy are made from the operation and maintenance portion. The total annual levy is $42.60, consisting of $18.64 in debt service and $23.96 in operation and maintenance. To account for normal inflationary increases in the cost of goods and services related to the maintenance and operation of the facilities, the assessment formula is proposed to include an annual adjustment limited to the change in the Consumer Price Index (San Francisco/Oakland Urban Area), not to exceed 5%. It is important to note that this is an adjustment in the maximum allowable assessment, and that the City Council may set the actual assessment at any amount less than the maximum. Further, 1972 Act districts may not collect assessments in excess of a half -year's financial requirements. This ensures that the assessments are levied only at the rate required to maintain the improvements for the fiscal year. The assessments for operation and maintenance shall commence to be collected in Fiscal Year 1998-99 and each fiscal year thereafter pursuant to the resolution of the Council adopted at an annual public hearing as provided by the 1972 Act. Any increase in assessments, other than those outlined in the method of apportionment resulting from land use or parcel changes, will be subject to the substantive and procedural requirements of the California Constitution Article XHID, requiring property owner approval through a protest ballot procedure. 26 Point San Pedro Road Landscaping District Preliminary Engineer's Report Part V — Assessment Diagram Description of the District Boundary The boundary of the proposed Point San Pedro Landscaping District is described as all lots, parcels and subdivisions of land within the City of San Rafael and the unincorporated areas of Marin County shown on the accompanying map, and generally located: • Between Mission Avenue and the San Rafael Canal east of Union Street; and On Seaview Avenue and easterly thereof; and • Easterly along Margarita Drive. The Point San Pedro Landscaping District will specifically provide for installation, construction, operation and maintenance of the median island landscaping on Third Street and Point San Pedro Road within the County of Marin, California. The costs related to the installation and construction of the improvements are to be funded through the issuance of bonds. The continued operation and maintenance of these improvements will be funded through annual assessments budgeted and reviewed each Fiscal Year. Attached hereto is an Assessment Diagram of the District. `h . t Point San Pedi Aoad Landscaping District Preliminary Engineer's Report Part VI — Assessment Roll The annual levy of assessments includes two components that comprise the necessary amount to be spread among the properties within the District. The two components are: • Annual debt service to pay back the annual debt on the bonds used to finance the construction of the improvements. • Annual maintenance, servicing and operation costs of the improvements. The base levy established in Fiscal Year 1998/99 will contain amounts for the annual debt service and maintenance costs for the fiscal year. Parcels within the District are assessed based on the method of apportionment described in Parts III and IV of this report. As parcels are subdivided, the resulting assessment will be apportioned to each subdivided parcel based on their proportion share of the original lien for debt service, and based on the resulting land use for the operation and maintenance assessment. Amounts collected in excess of debt service and maintenance costs, will be transferred into the appropriate reserve funds. Refer to Appendix B for a parcel listing and the proposed assessments. 28 Point San Pedro !toad Landscaping District Preliminary Engineer's Report Appendix A - DEBT SERVICE SCHEDULE A debt service schedule is provided in the following: Total Annual Date Principal Interest Coupon Payment 3/2/99 $0 $39,000 0 $0 9/2/99 0 19,500 0 58,500 3/2/00 0 19,500 0 0 9/2/00 15,000 19,500 6.5 54,000 3/2/01 0 19,013 0 0 9/2/01 20,000 19,013 6.5 58,025 3/2/02 0 18,363 0 0 9/2/02 20,000 18,363 6.5 56,725 3/2/03 0 17,713 0 0 9/2/03 20,000 17,713 6.5 55,425 3/2/04 0 17,063 0 0 9/2/04 20,000 17,063 6.5 54,125 3/2/05 0 16,413 0 0 9/2/05 25,000 16,413 6.5 57,825 3/2/06 0 15,600 0 0 9/2/06 25,000 15,600 6.5 56,200 3/2/07 0 14,788 0 0 9/2/07 25,000 14,788 6.5 54,575 3/2/08 0 13,975 0 0 9/2/08 30,000 13,975 6.5 57,950 3/2/09 0 13,000 0 0 9/2/09 30,000 13,000 6.5 56,000 3/2/10 0 12,025 0 0 9/2/10 30,000 12,025 6.5 54,050 3/2/11 0 11,050 0 0 9/2/11 35,000 11,050 6.5 57,100 3/2/12 0 9,913 0 0 9/2/12 35,000 9,913 6.5 54,825 3/2/13 0 8,775 0 0 9/2/13 40,000 8,775 6.5 57,550 3/2/14 0 7,475 0 0 9/2/14 40,000 7,475 6.5 54,950 3/2/15 0 6,175 0 0 9/2/15 45,000 6,175 6.5 57,350 3/2/16 0 4,713 0 0 9/2/16 45,000 4,713 6.5 54,425 3/2/17 0 3,250 0 0 9/2/17 50,000 3,250 6.5 56,500 3/2/18 0 1,625 0 0 9/2/18 50,000 1,625 6.5 53,250 Total $600,000 $519,350 $1,119,350 29 Point San Pedro _oad Landscaping District Preliminary Engineer's Report Appendix S — 1998/99 District Assessment Roll Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the 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, is included on the following pages. W