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HomeMy WebLinkAbout2024-080 - Resolution RESOLUTION NO. 2024-080 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAM AND ASSESSMENT; APPROVING THE ANNUAL ENGINEER'S REPORT; AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN PARK AND RECREATION IMPROVEMENT DISTRICT NO. PD-85 FOR FISCAL YEAR 2024/25 WHEREAS, the City Council of the City of Rancho Cucamonga did on the 5th day of June 2024, adopt its Resolution of Intention No. 2024-052 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Park and Recreation Improvement District No. PD-85 (the "District") for Fiscal Year 2024/25 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer as required by the 1972 Act; and WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, and said City Council having now acquired jurisdiction to order the proposed work. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows: SECTION 1: This City Council hereby finds and determines that notice of the public hearing has been given and the proceedings for the consideration of the levy of the annual assessments within the District have been undertaken in accordance with the 1972 Act. SECTION 2: The final assessments and diagram for the proceedings, as contained in the final Annual Engineer's Report for the District, are hereby approved and confirmed. The assessments for the District contained in the Annual Engineer's Report for Fiscal Year 2024/25 are hereby confirmed and levied upon the respective lots or parcels in the District in the amounts as set forth in applicable Annual Engineer's Report. SECTION 3: This City Council finds and determines that the public interest and convenience requires the levy and collection of assessments within the District for Fiscal Year 2024/25, and said City Council hereby orders that the work, as set forth and described in said Resolution of Intention be done and made. SECTION 4: The above-referenced diagram and assessment shall be filed in the Office of the City Clerk. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection. Resolution No. 2024-080 — Page 1 of 3 SECTION 5: The City Clerk is hereby ordered and directed to immediately file a certified copy of the diagram and assessment with the County Auditor. Said filing is to be made no later than the 3rd Monday in August 2024. SECTION 6: After the filing of the diagram and assessment, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessment. SECTION 7: The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. SECTION 8: The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2024, and ending June 30, 2025. Resolution No. 2024-080 — Page 2 of 3 PASSED, APPROVED, and ADOPTED this 17' day of July, 2024. L. D nnis ichae , May r ATTEST: lmm."A' Lam. ice C. Reynolds, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) I, Janice C. Reynolds, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 171h day of July, 2024. AYES: Hutchison, Kennedy, Michael, Scott, Stickler NOES: None ABSENT: None ABSTAINED: None Executed this 18' day of July, 2024, at Rancho Cucamonga, California. .nice C. Reynolds, Cit Clerk Resolution No. 2024-080 — Page 3 of 3 Annual Engineer's Report Fiscal Year 2024/25 City of Rancho Cucamonga Parks and Recreation Improvement District No. PD-85 Q9 ESSlp�, /��2PSpN W£0 ^yC * No.67514 * 07/17/2024 Jason C. Welday Date of cnt Director of Engineering Services/City Engineer ATTACHMENT 18 CITY OF RANCHO CUCAMONGA PARKS AND RECREATION IMPROVEMENT DISTRICT NO. PD-85 10500 Civic Center Drive Rancho Cucamonga, CA 91730 Phone: 909.477.2700 Fax: 909.477.2845 CITY COUNCIL L. Dennis Michael, Mayor Lynne B. Kennedy, Mayor Pro Tern Ryan A. Hutchison, Council Member Kristine D. Scott, Council Member Ashley N. Stickler, Council Member CITY STAFF John R. Gillison, City Manager Elisa Cox, Assistant City Manager Jason C. Welday, Director of Engineering Services/City Engineer Micah Martin, Public Works Director Noah Daniels, Finance Director TABLE OF CONTENTS AUTHORITY FOR REPORT 1 FINDINGS 1 DISTRICT ANALYSIS 2 ESTIMATE OF WORK 3 District Budget 3 Definitions of Budget Items 5 METHOD OF SPREAD 6 Annexations 8 Boundary Map 8 A UTHORI TY FOR REPORT This report for the Fiscal Year 2024/25 is prepared pursuant to the order of the City Council of the City of Rancho Cucamonga (the "City") and in compliance with the requirements of Article 4, Chapter 1, Landscape and Lighting Act of 1972 (the 1972 Act"), being Division 15, Section 22500 of the Streets and Highways code. Provisions for this annual assessment are included in Chapter 3 of the 1972 Act. The purpose of this report is to set forth findings and the assessment analysis for the annual levy of assessments for the Park and Recreation Improvement District No. PD-85 (the "District"). This District, using direct benefit assessments, was originally created to provide funds to finance the cost of construction, maintenance, operation and debt payment of Heritage Community Park and Red Hill Community Park in the City of Rancho Cucamonga. Subsequently, the debt has been repaid with only the ongoing maintenance and operation with periodic capital improvement expenditures of the parks remaining. FINDINGS Section 22573 of the 1972 Act, requires assessments to be levied according to benefit rather than according to assessed value. The section states: The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. The means of determining whether or not a parcel will benefit from the improvements is contained in the Improvement Act of 1911 (Division 7, commencing with Section 5000 of the Streets and Highways Code, State of California). The 1972 Act also provides for the classification of various areas within an assessment district into benefit areas where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of all territory receiving substantially the same degree of benefit from the improvements and may consist of contiguous or noncontiguous areas. As the assessments are levied on the bases of benefit, they are considered a user's fee, not a tax; and, therefore, are not governed by Article XIII A. Properties owned by public agencies, such as a city, county, state, or the Federal government, are not assessable without the approval of the particular agency and, normally, are not assessed. Certain other parcels used for railroad mainline right-of-way, public utility transmission right-of-way, and common areas are also exempt from assessment. The assessment for mobile home parks will be based upon underlying lot acreage. Park and Recreation Improvement District No. PD-85—City of Rancho Cucamonga 1 Fiscal Year 2024/25 DISTRICT ANALYSIS A. District Boundary The District includes all of the City of Rancho Cucamonga with the general exception of land east of Deer Creek Channel and the Victoria, Caryn and Terra Vista Planned Communities. All parcels of real property affected are more particularly described in maps prepared in accordance with Section 327 of the Revenue and Taxation Code, which are on file in the office of the San Bernardino County Assessor in the Hall of Records, 172 West Third Street, San Bernardino, California and which are hereby made a part hereof by reference. B. District Name City of Rancho Cucamonga Park and Recreation Improvement District No. PD-85. C. Facilities The existing works within the District boundary are generally described as follows: 1. The maintenance and operation of Heritage Community Park including, but not limited to, grading, planting, irrigation, onsite roads, sidewalks, parking lots, lighting, restrooms, equestrian facilities, playground equipment, picnic facilities, athletic facilities, and walking, jogging and equestrian trails and sanitary sewer connections. 2. The maintenance and operation of Red Hill Community Park including, but not limited to, grading, planting, irrigation, onsite roads, sidewalks, parking lots, lighting, waterscape, restrooms, senior citizens facilities, playground equipment, picnic facilities, major lighted athletic facilities, jogging trail, sanitary sewer connections and onsite drainage inlets. Park and Recreation Improvement District No. PD-85— City of Rancho Cucamonga 2 Fiscal Year 2024/25 ES TIMA TE OF WORK The 1972 Act permits carrying forward surpluses or recovering deficits in subsequent fiscal years. Costs for the district will be reviewed annually. Any surplus credited against assessment or any deficits shall be included in the assessment for the following fiscal year. District Budget Fiscal Year 2024/25 Budget Expenditures Personnel Services: Regular Salaries $ 177,640 Overtime Salaries 4,600 Fringe Benefits 88,890 Subtotal - Personnel 271,130 Operations and Maintenance: Operations and Maintenance: O & M/General 72,270 O & M!Facilities 3,300 Emergency Equipment and Vehicle Rental 8,500 Equipment Operations and Maintenance 3,300 Subtotal - Operations and Maintenance 87,370 Contract Services: Contract Services/General 374,660 Contract Services/Facilities 15,280 Tree Maintenance 26,820 Subtotal - Contract Services 416,760 Utilities: Telephone Utilities 1,920 Water Utilities 190,230 Electric Utilities 176,710 Subtotal - Utilities 368,860 Assessment Administration 99,190 Admin./General Overhead 94,070 Other Expenses 2,960 Subtotal -Operations and Maintenance 1,069,210 Capital Expenditures: Captial Outlay- Improvements Other Than Building 252,740 Captial Project 700,000 Subtotal -Capital Expenditures 952,740 Transfers Out: Transfers Out- PD-85 Capital Reserve Fund 116,800 Total Expenditures Budget $ 2,409,880 Park and Recreation Improvement District No. PD-85— City of Rancho Cucamonga 3 Fiscal Year 2024/25 Fiscal Year 2024/25 Budget Revenues Taxes: Estimated Assessments, Net of Estimated Delinquencies $ 1,164,150 Anticipated Prior Year Delinquencies Collection 13,560 Subtotal - Taxes 1,177,710 Other Revenues: Other Rental/Lease Income 124,010 Park Maintenance Fees 4,210 Sports Field User Group Rentals 110 Sports Lighting Fees 17,270 Other Revenue 100 Subtotal - Other Revenues: 145,700 Transfer In: Transfer In - General Fund 117,420 Transfer In - PD-85 Operating Fund 116,800 Transfer In - CFD Empire Lakes 86,890 Subtotal -Transfer In: 321,110 Total Revenues Budget 1,644,520 Contribution to/(Use of) Fund Balance $ (765,360) Total Gross Estimated Assessments $ 1,164,143.00 Total District EBU Count 37,546.00 Actual Assessment per EBU - Fiscal Year 2024/25 $ 31.00 Maximum Allowable Assessment per EBU - Fiscal Year 2024/25 $ 31.00 Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218. It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County of San Bernardino, whichever is later. Beginning with Fiscal Year 2016/17, the City will maintain a Capital Reserve to be used for deferred maintenance and pending capital projects. Park and Recreation Improvement District No. PD-85 — City of Rancho Cucamonga 4 Fiscal Year 2024/25 The reserve balance information for the District is as follows: Operating Capital Total Reserve Reserve Reserve Estimated Reserve Fund Balance, June 30, 2024 $ 2,379,818 $ 426,124 $ 2,805,942 Contribution to/(Use of) Reserve- Fiscal Year 2024/25 (785,410) 20,050 (765,360) Estimated Reserve Fund Balance, June 30, 2025 $ 1,594,408 $ 446,174 $ 2,040,582 Definitions of Budget Items The following definitions describe the costs and expenses included in the District Budget: Personnel Services: This item includes the costs attributed to the salaries of all full-time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees. Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District. Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements. Utilities: This item includes the costs to furnish electricity, water, and telephone services, as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District. Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings. General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure. Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements. Park and Recreation Improvement District No. PD-85 —City of Rancho Cucamonga 5 Fiscal Year 2024/25 Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking). METHOD OF SPREAD The 1972 Act indicates that assessments may be apportioned by any formula or method which fairly distributes costs among all lots or parcels within the District in proportion to the estimated benefit received. A. Definitions The District is divided into three categories for the purpose of determining the assessments as follows: CATEGORY A— includes parcels based on the number of existing residential units within certain ranges of parcel size. CATEGORY B — includes all parcels not defined in Category A or Category C CATEGORY C— includes exempt parcels. Exempt parcels are those parcels listed by the County Assessor's as exempt and/or which have an assessed value of less than $500. B. Formula The assessment formula is based on actual land use information contained in the current San Bernardino Assessor's computer files and Assessor's parcel maps. Category A: All parcels containing existing residential dwelling units and meeting the following conditions. Parcel Size/Range Dwelling Units/Parcel Less than 1.5 Acres and 1 or more dwelling units 1.51 to 3.5 Acres and 2 or more dwelling units 3.51 to 7.0 Acres and 4 or more dwelling units 7.01 to 14.0 Acres and 8 or more dwelling units 14.01 to 25 Acres and 15 or more dwelling units 25.01 Acres and larger 26 or more dwelling units Category A is based on the number of existing residential units. Park and Recreation Improvement District No. PD-85—City of Rancho Cucamonga 6 Fiscal Year 2024/25 Category B: All parcels not defined in Category A or Category C. Category C: All exempt parcels as defined below: 1. All properties currently tax exempt; 2. All public ownership; 3. Railroad mainline right-of-ways; 4. Major utility transmission right-of-ways; 5. Mineral rights; 6. Parcels so small they currently cannot be built upon; 7. All normally assessable parcels within an assessed valuation of less than $500 and 1.5 acres or less; and, C. Summary of Preliminary Assessment Amounts Category A: The preliminary estimated assessment rate, which will be levied during the Fiscal Year 2024/25, is $31.00 per residential dwelling unit for those parcels in Category A. Category A parcels containing more than one residential dwelling unit will be assessed for an amount equal to $31.00 times the number of residential dwelling units. Category B: The assessment, which may be levied for parcels within Category B during the Fiscal Year 2024/25, shall be according to the following schedule: Definition Assessment Per Parcels Single Family Residential $31.00 Multi-Family Residential $31.00 Less than 1.5 Acres $15.50 1.51 Acres to 3.50 Acres $46.50 3.51 Acres to 7.0 Acres $108.50 7.01 Acres to 14.0 Acres $217.00 14.01 Acres to 25.0 Acres $434.00 25.01 Acres and larger $775.00 Category C: The assessment shall be $0.00 for Category C parcels. Park and Recreation Improvement District No. PD-85— City of Rancho Cucamonga 7 Fiscal Year 2024/25 Annexations There are no effective annexations for Fiscal Year 2024/25. Boundary Map An Assessment Diagram for the District is shown on the following page. 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