HomeMy WebLinkAboutPW Special Tax on Properties at Loch Lomond 10 - Mello-Roos District No. 1992-1____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: June 1, 2020
Disposition: Resolution 14803
Agenda Item No: 4.f
Meeting Date: June 1, 2020
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Bill Guerin,
Director of Public Works
City Manager Approval: ________
TOPIC: SPECIAL TAX ON PROPERTIES AT LOCH LOMOND 10 - MELLO-ROOS
DISTRICT NO. 1992-1
SUBJECT: RESOLUTION SETTING THE SPECIAL TAX FOR COMMUNITY FACILITIES
DISTRICT NO. 1992-1 (LOCH LOMOND #10) FOR FISCAL YEAR 2020-21
RECOMMENDATION:
Adopt a resolution setting the special tax rates for Fiscal Year 2020-21 for Community Facilities
District No. 1992-1 (Loch Lomond 10).
BACKGROUND: Loch Lomond 10 is a community facilities district (commonly referred to as a
“Mello-Roos”) located on the Pt. San Pedro Peninsula, north of Point San Pedro Road. The
community facilities district comprises 28 home parcels, and one open space parcel which
borders China Camp State Park open space.
The community facilities district was formed in the
early 1990s when the area was developed. The
District was formed, in part, to provide funding to
mitigate the drainage impacts and concerns of the
development on the surrounding Loch Lomond
community. This was extensively documented in the
EIR documents, comments, and subsequent
approvals for the original subdivision. The final
conditional approval of Loch Lomond 10 required the
District to be formed. The District was created to
have three funds of money with which to maintain
and operate the storm drain system and insure
against damage from potential landslides. These
functions were defined in the formation of
Community Facilities District No. 1992-1 and passed
by resolution #8839 by the City Council on March 1,
1993. The three funds and purposes are as follows:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
1. Self-Insurance Fund: Provides a fund balance of $500,000 plus accumulated interest to
cover the deductible amount of the City’s insurance should a landslide occur in the
watershed above the District
2. Sinking Fund: Provides for long term capital replacement of drainage infrastructure and
facilities as the original may fall into disrepair
3. Maintenance Fund: Provides for maintaining drainage facilities within the Loch Lomond
10 boundary to include annual cleaning of drainage structures, monitoring structures
during storm events, and cleaning facilities as required during storm events
Since the early 1990s, the Finance Department has brought forward the levying of this annual
special tax to City Council in the spring. The annual special tax collected is divided in the three
distinct tranches; a portion of the special tax went to the Self-Insurance Fund, the Sinking Fund,
and the Maintenance Fund. The Self-Insurance fund portion of the special tax was $1,852 per
parcel annually until the $500,000 balance was achieved in FY 2004-05, and thereafter, the
annual special tax for the Self-Insurance fund was $0.
A four-year history of Assessments are as follows:
FY 2016-17* FY 2017-18* FY 2018-19** FY 2019-20
Assessment
Levied
Total
Revenue
Assessment
Levied
Total
Revenue
Assessment
Levied
Total
Revenue
Assessment
Levied
Total
Revenue
Self-Insurance Fund $0 $0 $0 $0 $0 $0 $0 $0
Sinking Fund $143 $3,861 $143 $3,861 $0 $0 $170.69 $3,538.38
Maintenance Fund $435 $11,745 $435 $11,745 $0 $0 $621.88 $16,790.79
Total $578 $15,606 $578 $15,606 $0 $0 $792.57 $20,329.17
***
*It is important to note that while the Sinking Fund and Maintenance Fund have an allowable annual
inflationary factor (increase), the rates of $143 and $435 were held flat from FY 2011-12 to FY 2017-18.
**In late 2017, the Homeowners Association Board of Loch Lomond Highlands requested the City review
historical expenditures and provide an accounting of the finances of the Loch Lomond 10 community
facilities district, as well as conduct a thorough review of the purpose and allowable expenditures of the
three district funds. Due to the ongoing nature of the research at the time FY 2018-19 assessments would
have been levied, it was decided that there would be no special tax levied in spring 2018 for FY 2018-19.
***The total revenues collected in FY 2019-20 was slightly less than the $21,399.42 anticipated due to
$1,070.25 in uncollected assessments.
Applying the allowable 2% inflationary factor to the Sinking Fund Assessment brings the FY
2020-21 Assessment from $170.69 to $174.10. The Maintenance Fund Assessment would be
increased from $621.88 to $661.38, after applying the allowable increase of the greater of the
CPI for the San Francisco Bay Area or personal income growth in the State of California. See
Attachment 2 for Sinking Fund and Maintenance Fund calculations.
FY 2020-21 Assessment
(Proposed)
Total Annual
Revenue
Generated
Self-Insurance Fund $0 $0
Sinking Fund $174.10 $4,700.80
Maintenance Fund $661.38 $17,857.20
Total $835.48 $22,558.00
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
In late 2017, the Homeowners Association Board of Loch Lomond Highlands requested that the
City review historical expenditures and provide an accounting of the finances of the Loch
Lomond 10 community facilities district, as well as conduct a thorough review of the purpose
and allowable expenditures of the three district funds. The homeowners had concerns over the
maintenance activities that the Public Works Department was performing, the condition of the
current drainage infrastructure, and the City’s historical usage of the District funds. Since that
time, the City and homeowners have worked together on finalizing a Maintenance Manual and
annual maintenance plan for the district. After a fall 2019 meeting with homeowners, the City,
and the City’s Assessment District consultant CSW/Stuber-Stroeh, the manual was finalized in
December 2019 with full approval and support from the representatives of the district.
ANALYSIS: In FY 2019-20, the district generated $16,791 in funds to be utilized for allowable
maintenance purposes within the Loch Lomond #10 Maintenance District, as follows:
FY 2019-20 Maintenance Activity Amount
County Admin Fee $54.00
FY 2019-20 Engineer’s Report - CSW/Stuber-Stroeh $5,089.75
Clamming and drainage basin clearing – Ad-Lite $9,375.00
Vegetation management/ Clearing of V-ditches – Forster & Kroeger $1,424.00
DPW Staff Time (remaining avail. maintenance budget) $848.01
Total $16,790.76
The $848 in DPW Salary costs represents only a fraction of the actual cost of Public Works
Streets Maintenance staff maintaining the district during FY 2019-20. In addition to the typical
pre-storm inspection and clearing of catch basins, staff spent several days in August with Ad-
Lite Craning Services clearing debris from the upper and lower Las Casas drainage basins
within the district, removing nearly 50 tons of debris. Throughout the storm season DPW staff
patrolled, inspected and cleared drainage basins within the district to ensure the system
continued to flow properly to the downhill drainage infrastructure. It is important to note the City
is only seeking $848.01 in reimbursement for staff time (estimated at one day of a Streets
Maintenance Worker II) because the City cannot charge the district for more than is available in
funding, and the Maintenance Fund for Loch Lomond #10 is currently projected to end FY 2019-
20 with a $0 fund balance. The City’s General Fund is subsidizing the additional DPW Staff
Time beyond the available Loch Lomond #10 maintenance funding.
For FY 2020-21, the City plans to utilize 100% of available maintenance funds ($17,857.26).
The Maintenance Activities for FY 2020-21 are anticipated as follows:
FY 2020-21 Maintenance Activity Amount
County Admin Fee $54.00
Clamming and drainage basin clearing $9,375.00
Vegetation management/ Clearing of V-ditches – Forster & Kroeger $1,500.00
DPW Staff Time (remaining avail. maintenance budget) $6,928.20
Total $17,857.20
It is important to note that an Engineer’s Report is not required on an annual basis to levy the
assessment. Since the district homeowners and Public Works are in agreement about the
annual maintenance guidance for the district, and funds for maintenance activities are limited,
the City will not be contracted with a firm to develop an Engineer’s Report annually. However,
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
the assessment roll and corresponding staff report detailing annual activities will continue to be
brought to City Council at the close of the fiscal year.
Since there will be no Engineer’s report for FY 2020-21, the City will be able to recoup more, but
still far below the actual cost of staff time spent maintaining the district. Last year’s Engineer’s
report reported the actual cost of Public Works staff time spent maintaining the district was
$15,974 (252.5 hours of DPW Staff Time). The FY 2020-21 budget projects the City will recoup
only $6,928. As stated earlier, the Maintenance Fund balance cannot go negative.
FISCAL IMPACT: All district financial activities are within Fund #236. Public Works intends to
utilize the full amount of Maintenance funds available each year to reimburse DPW staff time
and contracted maintenance activities as is within the allowable and intended use of District
funds. For FY 2020-21 this amount for maintenance activities will be $17,857.20.
The Sinking Fund shall be used to cover larger, capital costs, though with a current fund
balance of $32,547, it will take many more years to build up the fund to a significant amount to
cover the rebuilding of any capital infrastructure in the District.
The Loch Lomond 10 Self-Insurance Fund shall remain reserved for its intended purpose of use
for a claim within the District that would otherwise be covered by the City’s excess liability
insurance to pay the City-required self-insured retention under this coverage. The FY 2019-20
beginning year fund balance for the Self -Insurance Fund was $674,208 and represents the
$500,000 balance, plus all accumulated interest over time.
OPTIONS:
The City Council has the following options to consider relating to this matter:
1. Adopt the resolution as presented, levying the full special tax for Loch Lomond 10 –
Mello-Roos District No. 1992-1 for FY 2020-21.
2. Do not adopt the resolution as presented. Provide direction to staff to make changes on
recommended future actions.
RECOMENDED ACTION: Adopt a resolution setting the special tax rates for FY 2020-21.
ATTACHMENTS:
1. Resolution setting the District Tax for FY 2020-21 at $835.48 per parcel
2. Loch Lomond #10 Assessment Roll and Calculations (based on prior year’s Engineer’s
Report)
RESOLUTION NO. 14803
A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL
SETTING THE SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT
NO. 1992-1 (LOCH LOMOND #10) FOR FISCAL YEAR 2020-21
WHEREAS, the City Council of the City of San Rafael by Resolution No. 8839 formed
“Community Facilities District No. 1992-1, (Loch Lomond #10), City of San Rafael, County of
Marin, State of California,” (hereafter “CFD 1992-1”); and
WHEREAS, the landowners of CFD 1992-1 voted in a mail ballot election called by the
City Council by Resolution No. 8840, and unanimously approved the imposition of a special district
tax, as declared in Resolution No. 8841; and
WHEREAS, on March 9, 1993, the City of San Rafael prepared and caused to be
recorded a “Notice of Special Tax Lien” for all of the parcels within CFD 1992-1, which included
the facilities and services to be funded by the tax, and method for establishing a rate and
calculating the apportionment of the tax; and
WHEREAS, on July 17, 1995 the City Council adopted Ordinance No. 1683 levying
special taxes within CFD 1992-1; and
WHEREAS, Ordinance No. 1683 provides that the special tax rate will be set annually by
resolution subject to the maximum authorized by Resolution No. 8839; and
WHEREAS, the Department of Public Works is recommending the amount of the special
taxes to be assessed in FY 2020-21 as $174.10 for the Sinking Fund and $661.38 in the
Maintenance Fund – totaling $835.48; and
WHEREAS, the City Council wishes to set the specific tax rate to be imposed on the
parcels within CFD 1992-1 in fiscal year 2020-21;
NOW THEREFORE BE IT RESOLVED that the City Council of San Rafael hereby sets
the special tax for Community Facilities District No. 1992-1 (Loch Lomond #10) at $835.48 per
parcel for FY 2020-21 ($174.10 towards the Sinking Fund and $661.38 towards the Maintenance
Fund), excepting exempt Assessor Parcel Nos. 16-330-12,13,14, as provided in the Assessment
Roll for fiscal year 2020-21 on file with the City Clerk and incorporated herein by reference.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City Council
of said City held on Monday the 1st day of June, 2020, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
ASSESSMENT ROLL
(Please Refer to Part A – Method of Apportionment of Assessment
for a Summary of Changes to Assessment Roll)
SPECIAL
ASSESSMENT
NUMBER
AMOUNT OF
ASSESSMENT
(Fiscal Year
2020-2021)
PROPERTY
DESCRIPTION
Loch Lomond #10
Assessment District
ASSESSOR'S
PARCEL
NUMBER
1 $835.48 1 016-330-01
2 $835.48 2 016-330-02
3 $835.48 3 016-330-03
4 $835.48 4 016-330-04
5 $835.48 5 016-330-05
6 $835.48 6 016-330-06
7 $835.48 7 016-330-07
8 $835.48 8 016-330-08
9-1 $0.00 Portion of 9 016-330-12
9-2 $0.00 Portion of 9 016-330-13
9-3 $0.00 Portion of 9 016-330-14
10 $835.48 10 016-330-10
11 $835.48 11 016-330-11
12 $835.48 12 016-321-04
13 $835.48 13 016-321-03
14 $835.48 14 016-321-05
15 $835.48 15 016-321-01
16 $835.48 16 016-321-02
17 $835.48 17 016-321-06
18 $835.48 18 016-321-07
19 $835.48 19 016-321-08
20-1 $835.48 20 016-321-09
21 $835.48 21 016-321-10
22 $835.48 22 016-322-01
23 $835.48 23 016-322-02
24 $835.48 24 016-322-03
ASSESSMENT ROLL
(Please Refer to Part A – Method of Apportionment of Assessment
for a Summary of Changes to Assessment Roll)
SPECIAL
ASSESSMENT
NUMBER
AMOUNT OF
ASSESSMENT
(Fiscal Year
2020-2021)
PROPERTY
DESCRIPTION
Loch Lomond #10
Assessment District
ASSESSOR'S
PARCEL
NUMBER
25 $835.48 25 016-322-04
26 $835.48 26 016-322-05
27 $835.48 27 016-322-06
28 $835.48 28 016-322-07
29 $0.00 Parcel A 186-520-19
30 $0.00 Parcel B 186-520-20
TOTAL
ASSESSMENT
$22,557.96 (For Twenty-Eighth Year)
Each parcel is as shown on the maps of the County Assessor of the County of Marin at Book 16,
Pages 32 and 33 and Book 186, Page 52.
Property descriptions are lot or parcel numbers as shown on the recorded final maps of Loch
Lomond #10, recorded in Book 21 of Maps at Page 21, Marin County Records.
PART A
METHOD OF APPORTIONMENT OF ASSESSMENT
AND ALLOWABLE INCREASES
ORIGINAL APPORTIONMENT
There are 27 single family dwelling units and 3 below market rate units that were a further tax
division of lot 9 in the original subdivision existing within the Community Facilities District
boundary.
Each of the single family dwelling unit lots are assessed for equal portions of the total assessment.
And Lot 9 is assessed zero.
This assessment is exempt from the procedures and requirements of the (recently enacted
Proposition 218) California Constitution, Article 13D, Section 4 pursuant to the exemption
contained in Article 13D, Section 5(d) [previously majority voter approval or] Section 5(b) [petition signed by
persons owning all the property]. The benefits are entirely special benefits and there are no general
benefits. Additionally, the proposed assessment is within the limits of that allowed by the annual
increases.
Assessment Parcels 1 through 8, 10 through 28, are each assessed 1/27 of the total assessment.
Assessment Parcel 9-1, 9-2, 9-3, 29, and 30 each have zero ($0.00) assessment.
The following changes were made to the Assessment Rolls and Assessment Diagram in 1993,
although do not appear to have been noted in the Annual Engineer’s Reports. Mapping Changes at
the Marin County Assessor's Office are noted as follows:
Our office contacted the Marin County Assessor's Office due to obvious changes to the Assessor's
Parcel Maps for the Loch Lomond #10 development. According to information received from
Mapping Department staff, in calendar year 1993 a change was made to Parcel 9 splitting it into 3
APNs to accommodate the special status of the ownership of that lot. (see map below)
PART A
METHOD OF APPORTIONMENT OF ASSESSMENT
AND ALLOWABLE INCREASES
PART A
METHOD OF APPORTIONMENT OF ASSESSMENT
AND ALLOWABLE INCREASES
2020-2021 ASSESSMENT CALCULATIONS
Applying the method outlined the following increases are allowed:
Maintenance:
Original Assessment $225/unit
Personal Income Index 1992 (January) $22,678
Personal Income Index 2019 (January) $66,661
Factor $66,661 / $22,678= 2.9395*
CPI: San Francisco-Oakland-Hayward 1992 (July) 143.600
CPI: San Francisco-Oakland-Hayward 2019 (July) 296.859
Factor 296.859 / 143.600 = 2.0673
*Greater of the two factors
2020-2021 Maintenance Assessment (2.9395) x $225 = $661.38
Sinking Fund:
Original Assessment $100/unit
28 years at 2%, current assessment $174.10
TOTAL PROPOSED ASSESSMENT 2020-2021 $835.48 per unit
Total Available Funds (27 units) $22,558.00
ASSESSMENT ROLL
(Please Refer to Part A – Method of Apportionment of Assessment
for a Summary of Changes to Assessment Roll)
ASSESSMENT
NUMBER
ASSESSOR'S
PARCEL
NUMBER
NAME AND ADDRESS
1 016-330-01 Louis & Susan Neff
67 Las Casas Dr.
San Rafael, CA 94901
2 016-330-02 Richard & Karen Pettingill
71 Las Casas Dr., #601
San Rafael, CA 94901
3 016-330-03 Michael & Beth McCarthy
75 Las Casas Dr.
San Rafael, CA 94901
4 016-330-04 Steven & Judith Zimmerman Revocable Trust
79 Las Casas Dr.
San Rafael, CA 94901
5 016-330-05 David & Rosanna Neagle
87 Las Casas Dr.
San Rafael, CA 94901
6 016-330-06 Jarrett & Dana Evans
83 Las Casas Dr.
San Rafael, CA 94901
7 016-330-07 Ray & Lori Crawford Trust
91 Las Casas Dr.
San Rafael, CA 94901
8 016-330-08 Navinchandra & Damayanti Patel 2006 Survivors
Trust
90 Las Casas Dr.
San Rafael, CA 94901
9-1 016-330-12 Lane Dooling & Robert Pullinger
84 Las Casas Dr.
San Rafael, CA 94901
9-2 016-330-13 James B. Russell
84 Las Casas Dr. – Unit 2
San Rafael, CA 94901
9-3 016-330-14 Kelly Jacqueline & Jeff Burns
84 Las Casas Dr. – Unit 3
San Rafael, CA 94901
10 016-330-10 Salama Trust
78 Las Casas Dr.
San Rafael, CA 94901
ASSESSMENT ROLL
(Please Refer to Part A – Method of Apportionment of Assessment
for a Summary of Changes to Assessment Roll)
ASSESSMENT
NUMBER
ASSESSOR'S
PARCEL
NUMBER
NAME AND ADDRESS
11 016-330-11 Thomas J. Louderback Trust
105 Bountiful Ct.
Danville, CA 94526
12 016-321-04 Xianghua Zhang
12 Loch Haven Ct.
San Rafael, CA 94901
13 016-321-03 Timothy P. & Alice D. Pidgeon Revocable Trust
49 Inverness Dr.
San Rafael, CA 94901-2453
14 016-321-05 Miroslav & Marie Djordjevich Trust
8 Loch Haven Ct.
San Rafael, CA 94901
15 016-321-01 Dan L. Eaton & Theresa M. Sinnott-Eaton
42 Inverness Dr.
San Rafael, CA 94901
16 016-321-02 Zimmerman Family Living Trust
49 Inverness Dr.
San Rafael, CA 94901
17 016-321-06 Rachel Wahba 1999 Trust
53 Inverness Dr.
San Rafael, CA 94901
18 016-321-07 Donald D. & Susan W. Young Revocable Trust
57 Inverness Dr.
San Rafael, CA 94901
19 016-321-08 Polsky Living Trust
65 Inverness Dr.
San Rafael, CA 94901
20 016-321-09 Patrick J. & Lisa J. Helland
71 Inverness Dr.
San Rafael, CA 94901
21 016-321-10 Bijan 2005 Family Trust
75 Inverness Dr.
San Rafael, CA 94901
22 016-322-01 Karen S. Chatham Revocable Trust
369 B 3rd Street, #558
San Rafael, CA 94901
ASSESSMENT ROLL
(Please Refer to Part A – Method of Apportionment of Assessment
for a Summary of Changes to Assessment Roll)
ASSESSMENT
NUMBER
ASSESSOR'S
PARCEL
NUMBER
NAME AND ADDRESS
23 016-322-02 Bruce & Laura M. Rubin
66 Inverness Dr.
San Rafael, CA 94901
24 016-322-03 Kevin L. & Denise S. Jones Trust
62 Inverness Dr.
San Rafael, CA 94901
25 016-322-04 Christopher J. & Luann M. Desautel
58 Inverness Dr.
San Rafael, CA 94901
26 016-322-05 Philip R. & Susan C. Seefeld Trust
54 Inverness Dr.
San Rafael, CA 94901
27 016-322-06 Fabian M. Mach & Dorothy L. Gogol-Mach
48 Inverness Dr.
San Rafael, CA 94901
28 016-322-07 Paul B. & Linnea Weiss Trust
44 Inverness Dr.
San Rafael, CA 94901
29 186-520-19 Loch Lomond Highlands Homeowners
3001 Bridgeway, #370K
Sausalito, CA 94965
30 186-520-20 Marin Municipal Water District
P.O. Box 994
Corte Madera, CA 94976-0994
PART B
ASSESSMENT DIAGRAM
The original Assessment Diagram is no longer available in the City’s files. The following represents
the current District Engineer’s best re-creation of the Assessment Diagram likely used to form the
District. It is based on the Record Map of Loch Lomond #10 prepared by Oberkamper &
Associates Map Recorded May 27, 1993, in Book 21 of Maps, at Page 21 and the Assessment
Diagram used for the Pt. San Pedro Road Median Landscaping Assessment District.