to: city council re: hearing to consider the final annual

-cn;~~)1 ICO City Council Agenda Report Meeting Date: 6/19/18 TO: City Council

FROM: Linda Herman, Park & Natural Resource Manager, 896-7241

RE: HEARING TO CONSIDER THE FINAL ANNUAL ENGINEER'S REPORT AND THE LEVY AND COLLECTION OF THE 2018-19 ASSESSMENTS FOR THE HUSA RANCH/NOB HILL NEIGHBORHOOD PARK LANDSCAPING AND LIGHTING DISTRICT NO. LLD 001-08

REPORT IN BRIEF:

On 5/15/18, the City Council adopted resolutions approving the preliminary Annual Engineer's Report ("Report") and declaring its intention to levy and collect the annual assessments for the Husa Ranch/Nob Hill Neighborhood Park Landscape and Lighting District No. LLD 001-08 ("LLD") for the 2018-19 fiscal year. The Council also scheduled tonight's public hearing to consider approval of the final Report and the proposed annual levy of $58.74/parcel, which is less than last year's assessment of $63.30.

Recommendation -The Public Works Director-Operations & Maintenance recommends adoption of the resolution.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO APPROVING THE FINAL ANNUAL ENGINEER'S REPORT AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE HUSA RANCH/NOB HILL NEIGHBORHOOD PARK LANDSCAPING AND LIGHTING DISTRICT NO. LLD 001-08 FOR FISCAL YEAR 2018/2019

FISCAL IMPACT:

The costs for administering the LLD, levying the assessments, and maintaining the playground only are funded by the LLD annual assessments. In addition, a $74,000 loan borrowed from Fund 347- Neighborhood Park Zone I to construct the playground is being paid back through total annual payments of $5,938 for 20 years, which represents approximately $29 of the $58.74 annual assessment per parcel. Maintenance of the additional park area and amenities are funded by Chico Maintenance Districts 503 and 525.

BACKGROUND:

Following a public balloting process in March 2009, the City Council approved the formation of a LLD to levy an annual assessment on property owners to fund a portion of the construction costs and the annual maintenance of a new playground and other amenities to be constructed in the existing Husa Ranch/Nob Hill Neighborhood Park. The playground was completed in November 2009. As required by the Landscaping and Lighting Act of 1972 (Act), an annual Engineer's Report must be prepared and approved by Council at a public hearing to levy the assessment each year. A copy of the 2018/19final Engineer's Report is attached to the Resolution for the Council's information.

DISCUSSION:

The Act provides for the maximum assessment level to be adjusted each year by the greater of 3%, or the increase in the Consumer Price Index (CPI) for "All Urban Consumers for the San Francisco-Oakland-San Jose Area," which is the nearest CPI measurement area to Chico. From December 2016 to December 2017, the CPI increased by 3.22%, so the maximum assessment that could be levied will be increased by 3.22% to $88.92 per household. However, based on the actual costs for utilities and maintenance of the playground, the assessment to be levied for FY 2018-19 will be $58.74/parcel.

Approved and Recommended by:

MarJ<OI"ine, City Manager

ATTACHMENT: Resolution/Final Engineers Report

RESOLUTION NO .. __ _

2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO APPROVING THE FINAL ANNUAL ENGINEER'S REPORT AND ORDERING THE LEVY AND

3 COLLECTION OF ASSESSMENTS FOR THE HUSA RANCH/NOB HILL NEIGHBORHOOD PARK LANDSCAPING AND LIGHTING DISTRICT

4 NO. LLD 001-08 FOR FISCAL YEAR 2018/2019

5

6 WHEREAS, the City Council has, by previous resolutions, ordered the preparation of

7 the Annual Engineer's Report ("Report") for the Husa Ranch/Nob Hill Neighborhood Park

8 Landscaping and Lighting District No. LLD 001-08 ("District"), pursuant to the provisions of

9 the Landscaping and Lighting Act of 1972 ("Act");

I 0 WHEREAS, the Council has been presented with the final Report as required by

11 Section 22623 of the Act;

12 WHEREAS, the Council has carefully examined and reviewed the Report as presented,

13 and is satisfied with each and all of the items and documents as set forth therein, and is

14 satisfied that the levy has been spread in accordance with the benefits received from the

15 improvements, operation, maintenance and services to be perfonned, as set forth in said

16 Report; and

17 WHERE AS, the City of Chico ("City") and its legal counsel have reviewed

18 Proposition 218 and found that these assessments comply with applicable provisions of Article

19 XIII (D) of the Califomia State Constitution.

20 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Chico:

21 I. Following notice duly given, the Council has held a full and fair public hearing

22 regarding the District, the levy and collection of assessments, the Report prepared in

23 connection therewith, and considered all oral and written statements, protests and

24 communications made or filed by interested persons regarding these matters.

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Based upon its review of the Report, the Council hereby finds and detennines that:

A. The land within the District will be benefitted by the operation, maintenance

and servicing of improvements, located within the boundaries of the District;

B. The District includes all of the lands so benefitted; and

C. The net amount to be assessed upon the lands within the District in accordance

with the fee for the Fiscal Year commencing July 1, 2018, and ending June 30,

2019, is apportioned by a formula and method which fairly distributes the net

amount among all eligible parcels in proportion to the estimated special benefits

to be received by each parcel from the improvements and services.

The Report is hereby approved and is ordered to be filed with the City Clerk as a

pennanent record and to remain open to public inspection.

The District improvements may include, but are not limited to materials, equipment,

utilities, labor, appurtenant facilities and expenses necessary for the ongoing

maintenance and operation of the improvements constructed and installed in connection

with the Husa Ranch/Nob Hill Neighborhood Park and desired of properties within the

District. The Report provides a full and complete description of the improvements and

related assessments within the District.

The County Auditor of the County of Butte shall enter on the County Assessment Roll

opposite each eligible parcel of land the amount of levy so apportioned by the formula

and method outlined in the Report, and such levies shall be collected at the same time

and in the same manner as the County taxes are collected, pursuant to Section 22646 of

the Act. After collection by the County, the net amount of the levy shall be paid to the

City Administrative Services Director.

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VI.

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The City Finance Director shall deposit all money representing assessments collected

by the County for the District to the credit of a fund for the City of Chico H usa

Ranch/Nob Hill Neighborhood Park Landscaping and Lighting District No. LLD 001-

08 and such money shall be expended only for the maintenance, operation and

servicing of the improvements as described in section 4 of this resolution.

The adoption of this resolution constitutes the District levy for the Fiscal Year

commencing July I, 2018 and ending June 30, 2019.

The City Clerk, or a designee, is hereby authorized and directed to file the levy with the

County Auditor upon adoption of this Resolution, pursuant to Section 22641 of the Act.

That the above recitals are all true and correct and that the City Clerk shall certify to the

passage and adoption of this resolution, and the minutes of this meeting shall so reflect

the presentation of and final approval of the Report.

THE FOREGOING RESOLUTION WAS ADOPTED by the Council of the City of

Chico at its meeting held on , 2018, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

DISQUALIFIED:

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ATTEST:

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4 Deborah R. Presson City Clerk

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6 APPROVED AS TO FORM:

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10 *Approved pursuant to The Charter of the City of Chico Section 906(E)

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City of Chico Engineer's Report

Husa Ranch/Nob Hill Neighborhood Park Landscaping

and Lighting District

2018/2019 Engineer's Annual Levy Report

Intent Meeting: May 15, 2018

Public Hearing: June 19, 2018

"h/wiLLDAN

ENGINEER'S REPORT AFFIDAVIT

City of Chico,

County of Butte, State of California

Husa Ranch/Nob Hill Neighborhood Park Landscaping and Lighting District

This revised report describes the District including the improvements, budgets, parcels and assessments to be levied for fiscal year 2018/2019, as they existed at the time of the passage of the resolution of intention. Reference is hereby made to the Butte County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District.

Dated this __ 1_5t_h __ day of __ M_a_;.y ___ , 2018.

Willdan Financial Services Assessment Engineer On Behalf of the City of Chico -----~//~~ By: ______________ ___

Tony Thrasher, Project Manager

By:~ad~ Richard Kopecky R. C. E.# 16742

TABLE OF CONTENTS

I. INTRODUCTION 1

II. APPLICABLE LEGISLATION 2

Ill. PART 1- PLANS AND SPECIFICATIONS 6

A. Description of the District 6

B. Description of Improvements and Services 6

IV. PART II- METHOD OF APPORTIONMENT 9

A. General 9

B. Benefit Analysis 9

C. Assessment Methodology 11

D. Assessment Range Formula 15

v. PART Ill- DISTRICT BUDGET 17

VI. PART IV- DISTRICT DIAGRAMS 19

VII. PART V- ASSESSMENT ROLL 21

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I. INTRODUCTION

The City of Chico ("City") annually levies and collects special assessments for the purpose of funding the construction , maintenance and servicing of improvements associated with the Husa Ranch/Nob Hill Neighborhood Park (hereafter referred to as the "Park") within the District. The District was formed pursuant to the provisions of the City's Maintenance District Ordinance of 1997, being Chapter 3.81 of Title 3 of the Chico Municipal Code (hereafter referred to as "Municipal Code"}, and the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the "1972 Act") , and in compliance with the substantive and procedural requirements of the California State Constitution Article X/IlD (hereafter referred to as the "Article XIIID"). The boundaries of this District, the method of apportionment, and assessments described herein are based on an estimate of the annual costs to provide the proposed Park improvements, which may include, but are not limited to, related maintenance expenditures, incidental expenses, installation of park amenities and fund balances as outlined in the improvements plans for the Husa Ranch/Nob Hill Neighborhood Park, and by reference, these plans and related specifications are made part of this Report.

This Report identifies the properties within the District, a description of the proposed improvements and related assessments to be levied in connection with the special benefits the properties will receive from the District improvements. The proposed assessments described herein are based on the planned construction of the District improvements and an estimate of the annual costs to provide those improvements, which may include but is not limited to related maintenance expenditures, incidental expenses, and fund balances. Each parcel is assessed proportionately for only those improvements provided and for which the parcel receives benefit.

The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the Butte County Assessor's Office. The Butte County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.

Following consideration of public comments and written protests at a noticed public hearing, and review of the Annual Engineer's Report, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report , and confirmation of the assessments, the Council may order the levy and collection of assessments for fiscal year 2018/2019 pursuant to the Act. In such case, the assessment information will be submitted to the County Auditor/Controller, and included on the property tax roll for each benefiting parcel for fiscal year 2018/2019.

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II. APPLICABLE LEGISLATION

The District described in this Report has been formed pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, beginning with Section 22500. Pursuant to Chapter 3, beginning with Section 22620 of the 1972 Act, the City Council shall conduct annual proceedings for the levy and collection of assessments including a public hearing. At the Public Hearing, the City Council will accept public comments and testimony, review of this Report and approve the annual assessments to be levied on the County tax roll for the fiscal year.

Compliance with the California Constitution

All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and shall be in compliance with the provisions of Article XIII D.

On November 5, 1996, California voters approved the Right to Vote on Taxes Act (Proposition 218) by a margin of 56.5% to 43.5%. The provisions of Proposition 218 became amendments to the Cal ifornia Constitutional Articles XIIIC and XIIID , can be summarized in four general areas:

1) Strengthens the general and special tax provisions of Proposition 13 and Proposition 62.

2) Extends the initiative process to all local taxes, assessments, fees, and charges.

3) Adds substantive and procedural requirements to assessments.

4) Adds substantive and procedural requirements to property-related fees and charges.

The assessments contained in this report were imposed in accordance with voter approval pursuant to the establishment of the District. As such, the City has determined that the assessments are compliant with the substantive and procedural requirements of Articles XIIIC and Article XIIID. The proposed assessments for the current fiscal year may be less than or equal to the maximum assessment rates previously approved and adopted for the District. Any proposed assessment that exceeds the adjusted maximum assessment rate is considered an increased assessment. Pursuant to the provisions of Article XIIID, all new or increased assessments (the incremental increase) are subject to both the substantive and procedural requirements of Article XI liD Section 4, including a property owner protest proceeding (property owner assessment balloting).

Provisions of the 1972 Act (Improvements and Services)

The Method of Apportionment described for the District Report utilizes commonly accepted assessment-engineering practices and have been established pursuant to the 1972 Act and the provisions of Article XIII D. As generally defined by the 1972 Act,


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the improvements and the associated assessments for each District may include one or any combination of the following:

1) The installation or planting of landscaping .

2) The installation or construction of statuary, fountains, and other ornamental structures and facilities.

3) The installation or construction of public lighting facilities, including, but not limited to streetlights and traffic signals.

4) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof; including but not limited to, grading, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation , drainage, or electrical facilities .

5) The installation of park or recreational improvements including , but not limited to the following: a. Land preparation, such as grading, leveling , cutting and filling , sod ,

landscaping, irrigation systems, sidewalks, and drainage. b. Lights, playground equipment, play courts and public restrooms.

6) The maintenance or servicing, or both, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including , but not limited to: a. Repair, removal , or replacement of all or any part of any improvements; b. Grading, clearing , removal of debris, the installation, repair or construction

of curbs, gutters, walls , sidewalks, or paving, or water, irrigation, drainage, or electrical facilities;

c. Providing for the life, growth , health, and beauty of landscaping , including cultivation , irrigation, trimming, spraying , fertilizing , or treating for disease or injury;

d. The removal of trimmings, rubbish , debris, and other solid waste; e. The cleaning, sandblasting, and painting of walls and other improvements

to remove or cover graffiti. f . Electric current or energy, gas, or other agent for the lighting or operation

of any other improvements. g. Water for the irrigation of any landscaping, the operation of any fountains,

or the maintenance of any other improvements.

7) The acquisition of land for park, recreational or open-space purposes, or the acquisition of any existing improvement otherwise authorized by the Act.

8) Incidental expenses associated with the improvements including , but not limited to: a. The cost of preparation of the report, including plans, specifications,

estimates, diagram, and assessment; b . The costs of printing, advertising , and the publishing, posting and mailing of

notices;


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c. Compensation payable to the County for collection of assessments; d. Compensation of any engineer or attorney employed to render services; e. Any other expenses incidental to the construction, installation, or

maintenance and servicing of the improvements; and, f. Costs associated with any elections held for the approval of a new or

increased assessment.

This Report consists of five (5) parts:

Part I

Plans and Specifications: A description of the District boundaries and the proposed improvements associated with the District. The District was formed with a single benefit zone encompassing all properties that receive special benefits from the Husa Ranch/Nob Hill Neighborhood Park improvements and associated maintenance, operation and servicing of those improvements and facilities .

Part II

The Method of Apportionment: A discussion of benefits the improvements and services provide to properties within the District and the method of calculating each property's proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that will provide for an annual adjustment to the maximum assessment rates and resulting assessments to address reasonable and anticipated cost increase due to inflation without the added expense of additional property owner protest ballot proceedings.

Part Ill

The District Budgets: An estimate of the annual revenues required to fund the original construction and installation of the park improvements, and the costs associated with the ongoing operation , maintenance and servicing of the various improvements and facilities within the Husa Ranch/Nob Hill Neighborhood Park. The proposed budget and assessments provide for the recovery of a portion of the original costs to construct and install the various park enhancements (annual installments for capital improvements) and an estimate of anticipated maintenance costs and incidental expenses including, but not limited to, administration expenses and the collection of appropriate fund balances. Collectively, these estimated annual costs are used to establish an initial maximum assessment rate and assessments to be approved by the property owners of record within the District. The special benefit assessments are based on the overall improvement costs minus any contributions from other sources including the City's General Fund for costs determined to be of general benefit or to reduce the net amount to be assessed to properties within the District.

The assessments levied for the first fiscal year (Fiscal Year 2009/2010), and each subsequent year shall be based on the estimated net annual cost of Park construction loan repayments, costs of operating , maintaining, and servicing the District improvements


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for that fiscal year as well as funds to be collected in installments to fund long-term repairs, rehabilitation or other activities necessary to maintain the improvements and for which the associated costs cannot be reasonably collected in a single fiscal year's assessment. The maximum assessment (Rate per Equivalent Benefit Unit), established the initial maximum assessment rate and assessments, including the Assessment Range Formula described in the method of apportionment.

Part IV

District Diagram: A diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels of land that receive special benefits from the improvements and for which an assessment is imposed as part of this District. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all or a portion of the parcels shown on the Butte County Assessor's Parcel Maps in Book 002 Pages 16, 59, 61 , and 64, and shall include all subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the Butte County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District.

PartV

Assessment Roll: A listing of the parcels and proposed assessment amounts to be presented to the property owners of record . The proposed assessment amounts for each parcel is based on each parcel's proportional special benefit as outlined in the method of apportionment and the maximum assessment rate calculated from the net cost to construct and maintain the improvements within the District as outlined in the District budget.


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Ill. PART 1- PLANS AND SPECIFICATIONS

A. Description of the District

The territory within the District consists of all lots, parcels and subdivisions of land within the three residential subdivisions commonly known as Husa Ranch , Nob Hill, Stonehill and adjacent residential properties. The District encompasses an area of land totaling approximately eighty (80) acres that includes one hundred seventy-three (173) single-family residential homes, a 188-unit apartment complex (1 0.1 acres), an adjacent two acre residential property, and the Park site (2.8 acres). The District is situated in the north eastern portion of the City of Chico and is generally located:

•!• West of Bruce Road;

•!• South of East 8th Street; and,

•!• North of Deer Creek Highway

The parcels within the District, at the time this Report was prepared , are identified by the Butte County Assessor's Office as portions of Assessor's Parcel Maps in Book 002, Pages 16, 59, 61 , and 64. A boundary diagram identifying the District is provided in Part IV and a full listing of the parcels therein is contained in Part V of this Report.

B. Description of Improvements and Services

The purpose of the District is to provide a mechanism to fund through annual assessments, funding for the recovery of a portion of the original improvement construction and installation costs (collected over twenty years); and the ongoing maintenance, operation and servicing of the neighborhood park improvements, amenities and recreational facilities (collectively referred to as the "Improvements") associated with the Husa Ranch/Nob Hill Neighborhood Park. These Improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the construction, ongoing maintenance and operation of the improvements constructed and installed in connection with the development of the Park.

Description of the Improvements and Facilities

Detailed maps and descriptions of the location and extent of the proposed park improvements are on file in the General Services Department, and by reference these documents are made part of this Report. The proposed improvements and facilities are to be constructed on and within the existing 2.8-acre Park site that is situated between Sausalito Street, Coit Tower Way, Blackstone Court, and Palo Alto Street. These planned improvements are summarized in the following description based on the initial park design, but these plans and specifications may

City of Chico Husa Ranch/Nob Hill Neighborhood Park Landscaping and Lighting District Page6

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be modified as needed to complete the construction and installation of the proposed improvements and facilities to be funded by the District assessments.

•!• Site work, including excavating , trucking, drainage, equipment and labor.

•!• Concrete work including flatwork, pathways, and curbing.

•!• Landscaping , including soil prep, planting , and irrigation of hydro seed turf and shrubbery.

•!• Playground equipment area including slides, swings, climbing apparatus, etc.

•!• Public lighting facilities including security lighting installed as part of the plans associated with the Husa Ranch/Nob Hill Neighborhood Park.

•!• Bicycle parking area with bicycle rack.

•!• Drinking fountain.

•!• Trash receptacles.

•!• Shade trees.

•!• All appurtenant facilities , equipment, materials and utilities related to the aforementioned improvements.

The proposed assessments for the District are based on the net annual cost to fund the construction of the improvements and provide for the maintenance, operation and servicing of such park improvements as generally described within this Report. This net annual cost of the improvements shall be allocated to each property in proportion to the calculated special benefits received. For purposes of establishing the annual assessments, a budget has been developed that reflects an estimate of the annual costs to provide an acceptable level of maintenance of the park improvements to be constructed . In addition, to the planned park improvements, the annual assessments may also be utilized to fund additional park amenities and/or site furnishings that may include other improvements or facilities authorized by the 1972 Act, such as picnic tables, benches, drinking fountains, etc. , if funding is available.

The Playground Preliminary Master Plan for the Park is presented on the following page.


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IV. PART II -METHOD OF APPORTIONMENT

A. General

The City has historically established assessment districts throughout the City for the purpose of providing certain public improvements, which have included construction , maintenance, and servicing of public facilities including lighting, landscaping and appurtenant facil ities. Generally, the laws governing assessment districts require that the cost of the improvements be levied according to benefit rather than assessed value and the net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements provided. The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices and have been established pursuant to the provisions of the Chico Municipal Code, the 1972 Act and Article XIII D. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided , to fairly apportion the costs based on the special benefits to each parcel.

B. Benefit Analysis

The 1972 Act permits the establ ishment of assessment districts by agencies for the purpose of providing certain public improvements, which include but are not limited to the construction, maintenance, operation , and servicing of public park improvements and appurtenant facilities .

The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:

"The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements."

In conjunction with the provisions of the 1972 Act, the California Constitution Article XIIID addresses several key criteria for the levy of assessments, notably:

Article XI liD Section 2d defines District as:

"District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service";

Article XI liD Section 2i defines Special Benefit as:

"Special benefit" means 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."

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Article XI liD Section 4a defines proportional special benefit assessments as:

"An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel."

The method of apportionment (method of assessment) established herein is based on the premise that each assessed property receives special benefits from the Park improvements and services that are funded by such assessments, and the assessment obligation for each parcel reflects that parcel's proportional special benefits as compared to other properties that receive special benefits as outlined in the preceding definitions established in the 1972 Act and the California Constitution.

To identify and determine the proportional special benefit to each parcel within the District, it is necessary to consider the entire scope of the improvements provided as well as the properties that benefit from those improvements. The District's improvements and the associated costs described in this Report, have been carefully reviewed and have been identified and allocated based on a benefit rationale and calculations that proportionally allocate the net cost of only those improvements determined to be of special benefit to properties within the District. The Park improvements within the District and the associated costs have been identified as either "general benefit" (not assessed) or "special benefit".

Special Benefit

The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefit from the presence of the public lighting and well-maintained park facilities, trails, and open space areas in close proximity to those properties and these improvements directly enhance the desirability of those properties and provide recreational opportunities to the owners and occupants of those properties. These special benefits include, but are not limited to:

• Enhanced desirability of properties through association with the improvements.

• Improved aesthetic appeal of properties providing a positive representation of the area and properties.

• Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.

• Environmental enhancement through improved erosion resistance, dust and debris control , and fire prevention.

• Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with those properties.


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• Enhanced quality of life through well-maintained green space and landscaped areas.

• Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained and adequately lighted surroundings and amenities.

• Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.

• Local exercise and recreational opportunities.

• Improved pedestrians' accessibility.

All of the preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District.

General Benefit

In reviewing the District improvements, the proximity of those improvements to both properties within the District and those outside the District, as well as, the reasons for installing and constructing such improvements, it is evident that the enhanced improvements associated with the Park are a direct and special benefit to the properties within the District. It is evident that these improvements are not necessary to support the general public, but rather are desired by the property owners within the District. However, the potential does exist for people who do not live within the District to access and use the Park facility. The potential for this migrant use is minimal, due to the fact that people tend to use similar park facilities that are in close proximity to their property rather than travel substantial distances to utilize such park facilities. Therefore it has been determined that these park improvements provide no measurable general benefit to the public at large or to real property within the District. Although it is determined that these improvements are entirely special benefit to the properties within the District, the City will contribute approximately $53,000 towards the initial construction and installation of the improvements. This contribution would far offset any possible general benefit that these improvements may provide to the public at large.

C. Assessment Methodology

The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel's actual land use or proposed development.

All costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit


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conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider both the planned improvements and the properties that benefit from those improvements.

Equivalent Benefit Units:

The method of apportionment established for this District to reflect the proportional special benefit of each parcel utilizes a weighted methodology of apportionment typically referred to as an Equivalent Benefit Unit (EBU) methodology. This method of apportionment establishes the typically detached single-family home site as the basic unit of assessment. A single-family residential unit is assigned one (1 .0) Equivalent Benefit Unit (EBU) and other property types (land uses) are proportionately weighted (weighted EBU) based on a benefit formula that equates each property's specific characteristics and special benefits to that of the singlefamily residential unit. This proportional weighting may be based on several considerations that may include, but are not limited to: the type of development (land use), development-status (developed versus undeveloped) , size of the property (acreage or number of units), vehicular trip generation, as well as densities or other property related factors including any development restrictions or limitations.

For the improvements and assessments outlined in this Report, it has been determined that the most appropriate proportional special benefit calculation for each parcel is reasonably determined by two basic property characteristics:

·:· Land use- Commercial/Industrial Use; Residential Use, Institutional Use, Vacant Land (Undeveloped Property), Public Property etc. ; and ,

·:· Property Size- Acreage for non-residential properties; Units for residential properties. Property size (acreage or units) provides a definable and comparative representation of each parcel's proportional special benefit not only to similar types of properties but to other properties as well. The size of a property or the number of units within a property provides an appropriate and overall reflection of numerous considerations associated with each parcel's special benefits including vehicular trip generation, and development densities.

The following outlines the special benefits and equivalent benefit unit calculations to be applied to each of the various land use classifications identified forth is District to establish each parcel's proportional special benefit compared to other parcels within the District:

Single-Family Residential Property - This land use is defined as a fully subdivided residential home site with a single residential unit developed on the


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property. The special benefits that the Park provides to such properties include, but are not limited to:

·:· Enhanced desirability of properties through association with the improvements;

·:· Improved aesthetic appeal of properties providing a positive representation of the area and properties;

·:· Local exercise and recreational opportunities;

·:· Increased social opportunities and active involvement within the neighborhood.

For purposes of establishing the proportional special benefits and equivalent benefit units for other land uses in this District, the single-family residential land use is designated as the basic unit of assessment and shall be assigned 1.00 EBU per parcel (unit).

Multi-Family Residential & Mixed Use Property- This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the parcel. (This land use includes apartments, duplexes, triplexes, etc. , but does not generally include condominiums, town-homes). This land use designation also includes properties identified by the County Assessor's Office as mixed use property for which there is more than one residential unit (known number of residential units) associated with the property and for which the parcel's primary use is residential, but may also include a commercial component or unit associated with that property. The special benefits that the Park provides to such properties include, but are not limited to:

·:· Enhanced desirability of properties through association with the improvements;

·:· Improved aesthetic appeal of properties providing a positive representation of the area and properties;

·:· Local exercise and recreational opportunities;

·:· Increased social opportunities and active involvement within the neighborhood.

Although multi-family residential properties receive similar special benefits to that of single-family residential property and an appropriate and comparative calculation of proportional special benefits is reasonably reflected by the parcel's total number of residential units, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that multifamily units impact public infrastructure at reduced levels compared to a singlefamily residence, which is reflective of their reduced structure size, trip generation and need for various public improvements. Furthermore, as the density (number of units per parcel) increase, the average use of facilities such as parks tend to decline because the population density per unit tend to decrease (largely because of reduced unit sizes).

Based on these considerations, it is reasonable to conclude that the proportional special benefit and the equivalent benefit units for multi-family property should be


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based upon land densities and the number of residential units within each multifamily residential parcel. Since there is only one multi-family property within the District (a 188-unit apartment complex (the "Apartment Complex")), the land density calculations can be based upon this existing property. The Apartment Complex is situated on a 10.15 acre parcel. The average acreage of a single-family residential property within the District is 0.23 acres. Therefore, the 10.15 acres of the Apartment Complex is equivalent to 44.13 single-family properties. Given that multi-family properties tend to use infrastructure such as parks to a lesser degree than single-family properties, this 44.13 single family equivalency figure has been reduced 25% to 33.1 0. Dividing this 33.10 equivalency figure by the 188 residential units within the Apartment Complex, the assigned EBU for multi-family residential & mixed use property shall be 0.17 per residentia l unit (33.1 0 I 188).

Exempt Property (Parcel) - This land use identifies parcels that for various reasons, it has been determined that the parcel does not and will not receive special benefits from the Park improvements. This land use classification may include but is not limited to:

·:· Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);

·:· Dedicated public easements including open space areas, utility rights-of-way, greenbelts, parkways, or other publicly-owned or utility-owned land that serves the community or general public and are not considered or classified as developed institutional properties;

·:· Parcels of land that are privately owned, but cannot be developed independently from an adjacent property or is part of a shared interest with other properties, such as common areas, sliver parcels, bifurcated lots or properties with very restrictive development potential or use.

Because these properties either provide a public service that is comparable to a park or they are dependent on another property or development, these types of parcels have no direct need for a park and are considered to receive no special benefits Therefore these parcel shall be exempt from assessment and are assigned 0.00 EBU. However, these properties shall be reviewed annually by the assessment engineer to confirm the parcel's use and/or development status has not changed.

The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined.

Equivalent Current No. Land Use Type Benefit Units Multiplier of Parcels EBU Count

Single-Family Residential 1.00 LoUParcel 173 173.00

Multi-Family Residential 0 17 per Unit 1 31.96

Exempt Parcels 0.00 per parcel 7 0.00

TOTALS 181 204.96


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Land Uses and Equivalent Benefit Units

The following formula is used to calculate each parcel's EBU (proportional benefit).

Land Use Type EBU x Multiplier (Unit, Parcel) = Parcel EBU

The total number of Equivalent Benefit Units (EBU's) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU's of all parcels benefiting from the improvements. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for each zone.

Total Balance to Levy (Budget) I Total EBUs =Assessment Rate per EBU

Assessment Rate per EBU x Parcel's EBU = Levy per Parcel

D. Assessment Range Formula

Pursuant to the California Constitution Article XIIID, the imposition of any new or increased assessment requires certain noticing and meeting requirements. Prior to the passage of Proposition 218 (Now Articles XIIIC and XIIID of the California Constitution), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed."

As part of this District formation and establishment of annual assessments to fund the construction and ongoing operation , maintenance and servicing of those improvements, the proposed assessments submitted to the property owners of record shall include an annual inflationary adjustment referred to as an Assessment Range Formula. The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment that are inevitably associated with providing such improvements and activities, thereby reducing the need for additional noticing and mailing procedures simply because of inflationary factors. This Assessment Range Formula is defined by the following:

The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for Fiscal Year 200912010 in the amount of $68.00 per Equivalent Benefit Unit adjusted annually by the greatest of, three percent (3%) or the annual percentage change in the Consumer Price Index (CPI) of 11AII Urban Consumers" for the San Francisco-Oakland-San Jose Area for the preceding 12 months.

Beginning in the District's second fiscal year (Fiscal Year 2010/2011) and each fiscal year thereafter, the Maximum Assessment Rates will be recalculated and new Adjusted Maximum Assessment Rates will be established for the fiscal year utilizing the Assessment Range Formula described above. The Adjusted Maximum Assessment Rates shall be calculated independently of the District's annual budget


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and proposed assessments. Any proposed annual assessment (Rate per EBU) less than or equal to the Adjusted Maximum Assessment Rate shall not be considered an increased assessment.

To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XI liD Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting . Property owners, through the balloting process, must approve such a new or increased assessment before that new or increased assessment may be imposed.

The 2017 annual CPI percentage change for the San Francisco-Oakland-San Jose Area is 3.22%; therefore, the greater adjustment of 3.22% has been applied to calculate the Fiscal Year 2018/2019 Adjusted Maximum Assessment Rates.


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V. PART Ill - DISTRICT BUDGET The following budget outlines the estimated costs to construct the improvements associated with the Husa Ranch/Nob Hi ll Neighborhood Park with in the District. As shown below, the total construction costs are estimated at approximately $127,000. However, the City will contribute a sum of money that will result in the District being responsible for only $74,000 of these construction costs. The City will loan the District this $74,000, to be repaid over 20 years at 5% interest.

CONSTRUCTION ITEM UNIT COST QUANT. UNIT SUBTOTAL TOTAL

LIGHTING SECURITY LIGHTING 2,500 2 EA $5,000

$5,000 SITE WORK

EXCAVATING & TRUCKING 150 5 LOADS $750 EQUIPMENT & LABOR 1 1,500 LS 1,500 EQUIPMENT & LABOR 1 800 LS 800 SWWP 1 500 LS 500

$3,550 CONCRETE

FLAlWORK 6 2,726 SF $16,356 CURB 8"X12" 9 382 LF 3,247

$19,603 PLAY EQUIPMENT

PLAYWORLD 66,300 1 LS $66,300 LABOR 19,500 1 LS 19,500

$85,800 LANDSCAPE

IRRIGATION 1,000 3 VALVE $3,000 PLANTING 180 3 EA 540 HYDROSEED TURF 3,000 0 SF 300 SOIL PREP 3,000 1 SF 1,950 SEED 150 LS 150

$5,940 SITE FURNISHINGS

DRINKING FOUNTAIN 4,500 EA $4,500 TRASH RECEPTACLE 1,000 EA 1,000 BIKE RACK 1,200 EA 1,200

$6,700

TOTAL CONSTRUCTION COSTS: $126,593

AMOUNT CONTRIBUTED BY THE CITY: (52,593)

TOTAL CONSTRUCTION COSTS FUNDED BY THE DISTRICT: $74,000


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Below is the budget that outlines the estimated annual costs to repay the construction loan from the City and to maintain the improvements associated with the District. The below budget also establishes the proposed Maximum Assessment Rate (Levy per EBU) to be presented to the property owners of record for approval, and shows the amount proposed to be assessed in fiscal year 2018/2019.

' ' I

FY2017/2018 FY2018/2019 ' BUDGET ITEM Budget Budget

PARK CONSTRUCTION COSTS '11

Park Facilities Construction Loan Annual Payment Total Capital Improvement

ANNUAL MAINTENANCE (DIRECT COSTS) Landscape and Lighting Maintenance Expenses

Park Maintenance Utilities (Water/Electricity) Total Landscaping & Lighting Maintenance

REPLACEMENT/REHABILITATION (CIP) Collection For Future Rehabilitaion/Replacements

Park Rehabilitation I Replacement Total Collection for Capital Improvement/Rehabilitation Fund

ADMINISTRATION City Administration Overhead Professional Fees for Admin Public Hearing Advertising County Administration Fee Total Administration

Total Costs & Expenses

LEVY ADJUSTMENTS Reserve Fund Collection

Total Levy Adjustments

BALANCE TO LEVY

MAXIMUM ASSESSMENTS ALLOWED

DISTRICT STATISTICS Total Parcels Parcels Levied Total EBU Levy perEBU Maximum Balloted Assessment per EBU

FUND BALANCE INFORMATION Beginning Reserve Fund Balance Reserve Fund Activity Estimated Ending Fund Balance (Reserves)

Beginning Capital Improvement Balance CIP Activity Estimated CIP Fund Balance (Reserves)

<1> $7 4 ,000 Park Construction Loan will be amortized over 20 years at 5% interest.

$5,939 $5,939

$1 3,000

550 $3,550

$1,000 $1 ,000

$300 1.250

300 52

$1,902 $12,391

$582 $582

$12,973

$17,655

181 174

204.96 $63.30 $86.14

$4,074 582

$4,656

$6,000 1,000

$7,000

City of Chico Husa Ranch/Nob Hill Neighborhood Park Landscaping and Lighting District

$5,939 $5,939

$1 2,700

550 $3,250

$1,000 $1,000

$250 1,250

300 52

$1 ,852 $12,041

$0 $0

$12,041

$18,225

181 174

204.96 $58.75 $88.92

$4,656 0

$4,656

$7,000 1,000

$8,000

Page 18

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VI. PART IV- DISTRICT DIAGRAMS The parcels within the Husa Ranch/Nob Hill Neighborhood Park Landscaping and Lighting District consist of the lots, parcels and subdivisions of land generally located in the three residential developments known as Nob Hill, Stonehill, and Husa Ranch. The District covers approximately eighty (80) acres in the n·ortheastern portion of the City of Chico.

The following District Diagram is based on the Butte County Assessor's Maps and the Butte County Assessor's information as the same existed at the time this Report was prepared. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. The maximum assessment rate, assessment range formula and the proposed assessment amount for each of the existing parcels within the District as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the California Constitution.


City of Chico

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ASSESSMENT DIAGRAM FOR HUSA RANCH/NOB HILL NEIGHBORHOOD PARK

LANDSCAPING AND UGHTHING DISTRICT

cnY Of CHICO COUim' OF BV1TE

STATE OF CALIFORNIA

Husa Ranch/Nob Hill Neighborhood Park Landscaping and Lighting District Page 20

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VII. PART V- ASSESSMENT ROLL Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and available parcel maps and property data from the Butte County Assessor's Office at the time the Engineer's Report was prepared. A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts are provided herein.

Non-assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas, right-of-ways, common areas; small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment.

If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore, if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

The following is a list of the parcels and proposed assessment amounts for each of the parcels with in the District as determined by the assessment rates and method of apportionment described herein. The Land Use Types depicted in the list below are defined in Part IIC of this Report.


to: city council re: hearing to consider the final annual

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