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2024/07/23 City Council Resolution 2024-063 RESOLUTION NO. 2024-063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK DECLARING ITS INTENTION TO FORM LANDSCAPING AND LIGHTING DISTRICT NO. 2024-01 (WESTSIDE SERVICES) AND LEVY ASSESSMENTS, PRELIMINARILY APPROVING THE ENGINEER'S REPORT, PROVIDING NOTICE OF PUBLIC HEARING AND ORDERING THE MAILING OF THE ASSESSMENT BALLOTS WHEREAS, by Resolution No. 2024-054, approved on July 9, 2024 ("Resolution of Initiation"), the City Council ordered the initiation of proceedings for the formation of Landscape and Lighting District No. 2024-01 (Westside Services) pursuant to the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of the California Streets and Highways Code (commencing with § 22500 thereof) ("Act");and WHEREAS, the proposed landscaping maintenance assessment shall be described as "Landscape and Lighting District No. 2024-01 (Westside Services)"of the City of Rohnert Park (hereinafter the "Assessment District") which is generally located at the northwest corner of the intersection of Dowdell and Martin Avenues; and WHEREAS, Proposition 218 was adopted on November 6, 1996, adding Articles XIIIC and XIIID to the California Constitution, which impose certain procedural and substantive requirements relating to assessments (as defined)' and WHEREAS, the Landscape and Lighting District No. 2024-01 (Westside Services) is intended to satisfy the requirements of a Development Agreement between the City of Rohnert Park and Stadium Partners LP to provide a mechanism for funding the City's costs of providing special benefits for new development on the single parcel included within the Assessment District boundaries; and WHEREAS, an Engineer's Report("Report") has been prepared by Mary Grace Pawson, P.E., a registered, professional engineer with the City's Development Services Department ("Assessment Engineer") and submitted to the City Council, in which an assessment is proposed to fund the cost of the installation, maintenance and servicing of improvements as described in Section 3 below. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Rohnert Park as follows: SECTION 1: The above Recitals are in all respects true and correct. SECTION 2: Reference to Initiation and Approval of the Engineer's Report. In accordance with direction from the City Council set forth in the Resolution of Initiation, Mary Grace Pawson PE with the City's Development Services Department, ("Engineer of Work"), prepared an "Engineer's Report—City of Rohnert Park Landscape and Lighting District 2024-01 (Westside Services)" ("Report") pursuant to the Act and Article XIIID of the California Constitution. The Report has been prepared, filed with the City Clerk, reviewed, and duly considered by the City Council and is hereby deemed sufficient and approved for the preliminary purposes required by Streets and Highways Code Section 22586. The Report shall stand as the Engineer's Report for all subsequent proceedings under and pursuant to this Resolution. SECTION 3: Description of the Improvements: The purpose of the Assessment District is to provide for the installation, maintenance, and servicing of improvements. The District benefits from improvements ("Improvements") that are generally described as the installation, maintenance, and servicing of public improvements and facilities, including but not limited to, landscaping, sprinkler systems, park grounds, park facilities, playground equipment, landscape corridors, sidewalks, curbs and gutters, storm drainage systems, public lighting facilities, frontage and retention walls, other landscaping facilities, and related labor, materials, supplies, utilities, equipment, and incidental expenses. Under the Act, "Maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Under the Act, "Servicing"means the furnishing of electric current,or energy,gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping,the operation of any fountains, or the maintenance of any other improvements. SECTION 4: Reference to Engineer's Report: The Report is hereby incorporated by reference. Reference is hereby made to the Report for a full and detailed description of the Improvements (including the plans and specifications), the boundaries of the Assessment District and the proposed assessments upon assessable lots and parcels of land within the Assessment District. Reference is also hereby made to the Report for an estimate of the costs of the Improvements proposed to be financed from the proceeds of the proposed assessment. SECTION 5: Report of the Assessment Engineer: The Report is available for public review at the City of Rohnert Park City Hall, located at 130 Avram Avenue, Rohnert Park, CA 95408. The Engineer's Report includes: A. A description of the Improvements to be funded with assessment proceeds, services, and incidental costs;and B. An estimate of the annual cost of such Improvements;and C. A description of each assessable parcel of land within the District and proposed to be subject to the assessment;and D. A description of the proportionate special and general benefits conferred on property by the proposed assessment;and E. A description of the boundaries of the proposed Assessment District, which is the diagram for the assessment district;and F. A specification of the amount to be assessed upon various types of assessable land to fund the cost of the Improvements;and G. The proposed method and formula of assessing the costs and expenses of the Resolution 2024-063 Page 2 of 4 Improvements to the properties which will specially benefit from the Improvements. SECTION 6: Description of Assessment District: The Assessment District consists of the single parcel shown on the boundary map diagram of the Assessment District on file with the City Clerk, and reference is hereby made to such map for further particulars. SECTION 7: Proposed Assessment Rate: It is the intention of this City Council to levy and collect assessments within the Assessment District. The estimated Fiscal Year 2025-26 cost of providing the Improvements, less contributions for general benefits, is $74,148.08. Said estimated cost results in a proposed assessment rate of$74,148.08 for the one parcel within the Assessment District for Fiscal Year 2025-26. It is the further intention of the City to have the assessment collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, its general taxes. SECTION 8: Public Hearing: notice is hereby given that the public hearing on the proposed assessment shall be held before the City Council of the City of Rohnert Park at Rohnert Park City Hall, located at 130 Avram Avenue, Rohnert Park, California on Tuesday, September 10, 2024 at the hour of 5:00 p.m., or as soon thereafter as the matter may be heard, for the purpose of this City Council's determination of whether the public interest, convenience and necessity require the improvements and the City Council's final action upon the Report and the assessments therein. All interested people shall be afforded the opportunity to hear and be heard. Any interested person may file a written protest with the City Clerk, or, having previously filed a protest, may file a written withdrawal of that protest, prior to the conclusion of the public input portion of the public hearing. A written protest shall state all grounds of objection. A protest by a record owner of property within the proposed Assessment District shall contain a description sufficient to identify the property owned by the signer thereof The City Council shall consider all oral statements and all written protests made or filed by any interested person. SECTION 9: Notice and Ballot: The City Clerk hereby is authorized and directed to cause Notice of the hearing ordered under Section 8 hereof to be given in accordance with law by United States Mail, and such Notice shall be deemed to have been given when so deposited in the United States Mail. The envelope or cover of the mailing shall include the name of the City. The mailed Notice shall be given to the property owner of the single assessable parcel within the Assessment District by such mailing by name to those persons whose names and addresses appear on the last equalized secured property tax assessment roll of Sonoma County. The Notice shall include, but not be limited to, the total amount of assessment proposed to be levied in the Assessment District for fiscal year 2025-26, the assessment proposed for the owner's particular parcel(s) and the duration thereof and the reason for the assessment. Each Notice shall also contain the proposed assessment and the basis upon which the amount of the assessment was calculated. Each Notice shall also contain an assessment ballot, a summary of the procedures applicable to the completion, return and tabulation of assessment ballots, the date, time, and location of the public hearing and a statement that the existence of a majority protest will result in the assessment not being imposed. The Notice herein provided shall be mailed not less than forty-five (45)days before the date of the public hearing. SECTION 10: Additional Information: To obtain additional information about the proposed assessments, the Assessment District, or the proposed Improvements contact: Mary Grace Pawson with the City's Development Services Department at (707) 588-2234 or mpa«..,on a rpc it%.orn . The Engineer's Report and other written material about the Assessment Resolution 2024-063 Page 3 of 4 District may also be reviewed at the Office of the City Clerk during regular business hours. SECTION 11: Annual Assessments: The assessments are proposed to be levied annually. If the proposed assessments are approved and confirmed by the City Council, the assessments will increase in future years by an amount up to the change in the Northern California(San Francisco- Oakland-Hayward) Consumer Price Index-All Urban Consumers (the "CPI") without a further vote or balloting process. In each subsequent year in which the assessments will be levied, an updated Engineer's Report, including a proposed budget and assessment rate, shall be prepared. The updated Engineer's Report shall be considered by the City Council at a noticed public hearing. The City Council's approval of each updated Engineer's Report shall serve as the basis for the continuation of the assessments. DULY AND REGULARLY ADOPTED this 23rd day )NERT ly 2024. CITY if PARK ..•-weilii000 , ATTEST: Gerar• ayor Pro Tem Elizab th Machado, Assistant City Clerk APPROVED AS TO FORM: Michelle M. Kenyon, City Attorney Attachments: Exhibit A ELWARD: RODRIGUEZ: i p SANBORN: Cat _GIUDICE: Otis ADAMS: AYES: ( 4- ) NOES: ( ) ABSENT: ( ) )1 ABSTAIN: ( p, ) Resolution 2024-063 Page 4 of 4 District may also be reviewed at the Office of the City Clerk during regular business hours. SECTION 11: Annual Assessments: The assessments are proposed to be levied annually. If the proposed assessments are approved and confirmed by the City Council, the assessments will increase in future years by an amount up to the change in the Northern California(San Francisco- Oakland-Hayward) Consumer Price Index-All Urban Consumers (the"CPI")without a further vote or balloting process. In each subsequent year in which the assessments will be levied, an updated Engineer's Report, including a proposed budget and assessment rate, shall be prepared. The updated Engineer's Report shall be considered by the City Council at a noticed public hearing. The City Council's approval of each updated Engineer's Report shall serve as the basis for the continuation of the assessments. DULY AND REGULARLY ADOPTED this 23`d day of July 2024. CITY OF ROHNERT PARK ATTEST: Gerard Giudice, Mayor Pro Tem Elizabeth Machado, Assistant City Clerk APPROVED AS TO FORM: Michelle M. Kenyon', City Attorney Attachments: Exhibit A ELWARD: RODRIGUEZ: SANBORN: GIUDICE: ADAMS: AYES: ( 1 NOES: ( ) ABSENT: ( 1 ABSTAIN: ( ) Resolution 2024-063 Page 4 of 4 ENGINEER’S REPORT CITY OF ROHNERT PARK LANDSCAPE & LIGHTING DISTRICT 2024-01 (WESTSIDE SERVICES) PREPARED BY: CITY OF ROHERT PARK DEVELOPMENT SERVICES DEPARTMENT JULY 9, 2024 Table of Contents Introduction .................................................................................................................................................. 1 Legal Requirements for District Formation................................................................................................... 3 Proposition 218 ........................................................................................................................................ 3 Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal.4th 431 ..................................................................................................................................... 3 Dahms v. Downtown Pomona Property (2009) 174 Cal.App.4th 708 .................................................. 3 Bonander v. Town of Tiburon (2009) 180 Cal.App.4th 103 ........................................................ 4 Beutz v. County of Riverside (2010) 184 Cal.App.4th 1516 .................................................................. 4 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal. App. 4th 416 .... 4 Compliance with Legal Requirements ...................................................................................................... 4 Plans & Specifications ................................................................................................................................... 5 General Overview and Definitions. ........................................................................................................... 6 Park and Streetscape Maintenance .......................................................................................................... 6 Storm Drainage Maintenance and Monitoring ......................................................................................... 6 Lighting Maintenance ...................................................................................................................... 7 Repair and Replacement Reserves ........................................................................................................... 7 District Administration .............................................................................................................................. 7 Fiscal Year 2025-26 Estimate of Cost and Budget ........................................................................................ 8 Method of Assessment Apportionment ....................................................................................................... 8 Discussion of Benefit ................................................................................................................................. 9 Special Benefits ....................................................................................................................................... 10 Proximity to improved parks and landscapes ..................................................................................... 10 Extension of a Property’s Outdoor Areas and Green Spaces for Properties within Close Proximity to the Improvements ......................................................................................................... 10 Improved Safety and Access from Sidewalk and Drainage Facilities .................................................. 10 Improved Nighttime Visibility and Safety from Streetlights ....................................................... 11 Creation of Property for Residential Use that, in Absence of the Assessments, Would Not Have Been Created...................................................................................................................................... 11 Calculation of General and Special Benefits ........................................................................................... 11 General Benefit to the Public at Large .......................................................................................... 12 General Benefit to Property Outside the District ....................................................................... 13 General Benefit to Property within the Assessment District ..................................................... 13 Total General Benefits ......................................................................................................................... 13 Zones of Benefit ...................................................................................................................................... 14 Method of Assessment and Apportionment .......................................................................................... 14 Annual Cost Indexing .............................................................................................................................. 14 Duration of Assessment .......................................................................................................................... 14 Assessment Funds Expended on Benefitting Maintenance Activities .................................................... 15 Oversite, Annual Review and Accountability .......................................................................................... 15 Assessment ................................................................................................................................................. 16 Assessment Diagram ................................................................................................................................... 18 Assessment Roll - FY 2025-26 ..................................................................................................................... 20 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 1 Introduction The Residences at Five Creek is a mixed-use project within the Stadium Area Master Plan area on the west side of Rohnert Park. The project includes a hotel, a park and an apartment complex known as Adega. The apartment complex is being developed in two phases: a 135-unit first phase and a 74-unit second phase. The Residences at Five Creek project was developed under a Development Agreement (the “DA”) between City of Rohnert Park (the “City”) and Stadium RP Development Partners. Stadium Lands RP Development Partners subsequently assigned the DA to Rohnert Park 668 L.P. (the “Developer”), who is developing Adega. The DA, among other things, requires the Developer to pay a “Service Payment” to offset the additional cost of service created by residential development1, consistent with the City’s General Plan polices and goals. For Fiscal Year 2024-25, the Service Payment is capped at $1,002.00/multi-family unit; however, the amount of the Service Payment is subject to annual adjustments on each July 1 based on the San Francisco Bay Area Consumer Price Index. In early 2020 at the Developer’s request, the City formed Community Facilities District 2019-01 – Westside Residential Services (“CFD 2019-01”) to satisfy the DA requirements for Adega Phase I. The Developer has requested the formation of the proposed City of Rohnert Park Landscape and Lighting District 2024-01 (Westside Services) (the “District”) to satisfy the DA requirements for Adega Phase II. This Engineer’s Report is being prepared to support formation of the LLD under the Landscape and Lighting District Act of 1972 (the “Act”) and Articles XIIIC and XIIID of the California State Constitution (“Proposition 218”). As required by the Act, this Report includes plans and specifications, a diagram or map of the District property boundaries, the benefits received by property from the Improvements supported by the District, and the method of allocating the City’s costs of providing the Improvements to lots and parcels within the District (the “Assessments”). As required by Proposition 218, if the City Council approves this Engineer’s Report and the proposed Assessments by resolution (known as a “Resolution of Intention”), an assessment ballot and notice will be mailed to each property owner as identified in the most recent equalized tax roll prepared by the Sonoma County Assessor’s office. The Resolution of Intention preliminarily approving the Engineer’s Report and mailed notice will include the date for a public hearing at which time all assessment ballots must be received to be counted in accordance with Government Code Section 53753. The notice and assessment ballots must be mailed at least 45 days prior to the public hearing. At the appointed time and place, a public hearing will be held to allow public testimony about the proposed Assessments. At this hearing, the Council will hear public testimony and tabulate all assessment ballots turned in before the close of the public comment period of the public hearing. If it is determined that the assessment ballots submitted in opposition to the proposed Assessments do not exceed the assessment ballots submitted in favor of the Assessments (each ballot is weighted by the proportional financial obligation of the property for which the ballot is submitted) the Council may take action to approve the levying of Assessments. Because the formation of the District is planned to occur after July 1, 2024, the Service Payment owed by the Developer to the City under DA Section 6.5 for Fiscal 1 Development Agreement Section 6.5, Public Service Payment. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 2 Year 2024-25 will be “hand billed” to the Developer, and each subsequent years’ Assessments (beginning with Fiscal Year 2025-26) will be submitted to the Sonoma County Auditor/Controller for inclusion on the annual property tax rolls. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 3 Legal Requirements for District Formation Proposition 218 This District is being formed and assessments are being calculated consistent with Proposition 218. Proposition 218 was approved by the voters of California on November 6, 1996, and is now incorporated in Articles XIIIC and XIIID of the California Constitution. Among other requirements, Proposition 218 provides for assessments to be levied on properties to fund the cost of providing “improvements” that specially benefit the assessed properties. Under Proposition 218 and the Act, and the judicial decisions interpreting them, the term “improvements” is broadly defined to generally include acquisition of property; installation of landscaping, lighting, or ornamental structures or facilities, construction that is appurtenant, necessary, or convenient to those installations (such as curbs, gutters, walls, sidewalks, paving, irrigation, drainage, or electrical, as well as parks, restrooms, and community gathering facilities); maintenance; and other related services such as operations and administration. Proposition 218 describes several important requirements, including procedural requirements for property-owner balloting to approve the formation of assessment districts. In essence, as summarized above, the City may only approve an assessment district if the property-owner assessment ballots submitted in opposition to the proposed Assessments do not exceed the property-owner assessment ballots submitted in favor of the Assessments (each ballot is weighted by the proportional financial obligation of the property for which the ballot is submitted). Proposition 218 and the judicial decisions interpreting it also describe important substantive requirements that must be satisfied in identifying and quantifying the amount of the Assessment imposed on each property-owner based on the special benefit received by the assessed property-owner. Some of these key judicial decisions are summarized below. Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal.4th 431 In Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“SVTA”), the California Supreme Court clarified how public agencies must determine assessed special benefit under Proposition 218. The Court found that: · Benefit assessments are for special, not general, benefit · The services and/or improvements funded by assessments must be clearly defined · Special benefits are directly received by and provide a direct advantage to property in the Assessment District · The assessment levied on each property should be proportional to the special benefits it receives from the Improvements Dahms v. Downtown Pomona Property (2009) 174 Cal.App.4th 708 In Dahms v. Downtown Pomona Property (“Dahms”) the Second District Court of Appeal upheld an assessment that was 100% special benefit (i.e., 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 4 Bonander v. Town of Tiburon (2009) 180 Cal.App.4th 103 In Bonander v. Town of Tiburon (“Bonander”), the First District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub- areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits. Beutz v. County of Riverside (2010) 184 Cal.App.4th 1516 In Steven Beutz v. County of Riverside (“Beutz”) the Fourth District Court of Appeal overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified, and separated from the special benefits. Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal. App. 4th 416 In Golden Hill Neighborhood Association v. City of San Diego (“Golden Hill”), the Fourth District Court of Appeal overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified, and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. Compliance with Legal Requirements This Engineer’s Report is consistent with the requirements of Proposition 218 and the judicial decisions interpreting it because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity to the improvements, the benefitting property in the District is required as a condition of its development to help support the costs of the improvements and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property. This Engineer’s Report is consistent with Beutz, Dahms and Golden Hill because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer’s Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 5 Plans & Specifications The District maintains landscaping, streetscaping, lighting and other improvements that directly benefit the property in the District. The work and improvements to be undertaken by the proposed District are described below and illustrated in Figure 1. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 6 General Overview and Definitions. The installation, maintenance, and servicing of public improvements and facilities, including but not limited to, landscaping, sprinkler systems, park grounds, park facilities, playground equipment, landscape corridors, sidewalks, curbs and gutters, storm drainage systems, public lighting facilities, frontage and retention walls, other landscaping facilities, and related labor, materials, supplies, utilities, equipment, and incidental expenses (collectively “Improvements”). Under the Act, “Installation” means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting, and filling), sod, landscaping, irrigation systems, sidewalks, walkways and drainage, lights, playground equipment, play courts, playing fields, recreational facilities, and public restrooms. Under the Act, “Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Under the Act, “Servicing” means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Under the Act, “Incidental Expenses” include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (Streets & Highways Code §22526). Park and Streetscape Maintenance Includes maintenance, repair and replacement of a publicly owned park, including a playground, bocce courts, skate feature, turf, decorative landscape, irrigation facilities and water, a decorative gazebo, benches, tables, bike racks, fences, trash and recycling bins, decorative walls, and frontage curb, gutter and sidewalk along the park frontage and the Adega II development, together with all appurtenances and appurtenant work in connection with the foregoing improvements. Storm Drainage Maintenance and Monitoring Includes permitting, operation, maintenance, monitoring and repair of publicly owned drainage and storm water treatment systems that receive tributary flow from the Adega II development, together with all appurtenances and appurtenant work in connection with the foregoing improvements. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 7 Lighting Maintenance Includes the cost of power, maintenance services, electricity and an allowance for replacement of the 2 streetlights along the Adega II development frontage together with all required appurtenances and appurtenant work in connection with foregoing improvements. Repair and Replacement Reserves Dedicated funding, often referred to as “reserves,” will be used to support the cash flow needs of the District (because assessments are collected twice a year) and in the event improvements need to be replaced, outside of the budgeted replacement schedule, due to failure, damage, natural disaster etc. District Administration District administration expenses include all costs associated with the annual administration including the costs of developing budgets, calculating assessments, preparing the annual engineer’s report, holding the annual hearing, and levying the taxes with the County of Sonoma for collection. Annual administration costs may include costs for City staff time as well as outside legal, financial and engineering consultants and any fees charged by the County of Sonoma. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 8 Fiscal Year 2025-26 Estimate of Cost and Budget The Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other costs identified with the District proceedings. An estimate of District costs for fiscal year 2025-26 for the maintenance and servicing of the Improvements is provided below. Method of Assessment Apportionment This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District. The District consists of Sonoma County Assessor’s Parcel Number 143-040-139, which contains the Adega II development of 74 multi-family units. The method used for apportioning the assessment is based upon the proportional special benefits derived by the properties in the District over and above Landscape & Lighting District 2024-01 (Westside Residential) Fiscal Year 2025-26 Budget Estimate Description Unit Unit Cost Total Park Maintenance Park & Streetscape Maintenace 3 person crew day*1,680.00$ 30 days/year 50,400.00$ Irrigation Water**LS 3,200.00$ 1 each 3,200.00$ Mulch Replacement (2 years)LS 6,741.95$ 1 each 6,741.95$ Bocce Court Material Replacement (2 years)LS 12,877.06$ 1 each 12,877.06$ Planting Replacement (10 years)LS 7,119.50$ 1 each 7,119.50$ Turf Replacement (10 years)LS 2,739.24$ 1 each 2,739.24$ Playground Fall Material Replacement (5 years)LS 5,281.70$ 1 each 5,281.70$ Playground Equipment Replacement (10 years)LS 1,404.57$ 1 each 1,404.57$ Gazebo Structure Replacement (25 years)LS 2,043.01$ 1 each 2,043.01$ Tables/Benches/ Bike Racks/Trash/Fence Replacement (15 years)LS 6,670.87$ 1 each 6,670.87$ Drinking Fountain Replacement (5 years)LS 4,086.03$ 1 each 4,086.03$ Underground Utilities Replacement (40 years)LS 1,113.39$ 1 each 1,113.39$ Park Pathway and Wall Replacement (50 years)LS 1,690.65$ 1 each 1,690.65$ Frontage Curb/Gutter Replacement (50 years)LF 85.00$ 379.22 LF 6,446.74$ Frontage Sidewalk Replacement (50 years)SF 10.00$ 4000.96 SF 8,001.91$ Subtotal Park Maintenance (rounded to nearest dollar)119,817.00$ Street Frontage Maintenance (Adega II only) Frontage Curb/Gutter Replacement (50 years)LF 85.00$ 838.82 LF 1,425.99$ Frontage Sidewalk Replacement (50 years)SF 10.00$ 4000.96 SF 800.19$ Storm Drainage Maintenace & Monitoring 3 person crew day*1,680.00$ 6 days/year 10,080.00$ Lighting Street Light Replacement each 5,000.00$ 1 5 years 1,000.00$ Street Light Electricity LS 500.00$ 1 each 500.00$ Total Maintenance and Operations Budget 133,623.00$ City Contribution for General Benefits to the Public LS (7,443.00)$ 1 each (7,443.00)$ General Benefit Contribution for Park Maintenance & Reserves LS (77,393.76)$ 1 each (77,394.00)$ Reserves (10% allowance)LS 13,362.00$ 1 each 13,362.00$ Annual Administration (benefit to LLD only)LS 12,000.00$ 1 each 12,000.00$ Budget to Assessment 74,148.00$ *Calculated at $70/hr($34/hr salary + benefits and overhead) **Calculated based on water use patterns of .65 acres of irrigated landscape @ 2.9 af/acre/year @ recycled water rates Quantity City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 9 general benefits conferred on real property or to the public at large. Special benefit and the Assessments are calculated using the following process: · Identification of special benefit factors derived from the Improvements · Calculation and quantification of the general benefits · Determination of the relative special benefit within different areas within the Assessment District · Determination of the relative special benefit per property type · Apportionment of the costs to Assessment and calculation of the Assessment for each individual parcel based upon special benefit; location, property type, property size, property characteristics, improvements on property and other supporting attributes. Discussion of Benefit Assessments must reflect the cost of special benefit to property in the District. This special benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 (the “Act”) 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." Proposition 218 confirms that assessments must be based on the special benefit to property and that the City’s cost to provide the special benefits may exceed the cost of the assessment: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." The following benefit categories summarize the types of special benefit to property in the District from the installation, maintenance, and servicing of the Improvements to be provided with the assessment proceeds. These categories of special benefit are derived from the statutes passed by the California Legislature and judicial decisions interpreting that legislation and Proposition 218 which describe the types of special benefit received by property from maintenance and Improvements such as those within by the District. These types of special benefit are summarized as follows: · Proximity to improved parks and landscapes · Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements. · Improved safety and access from sidewalk and drainage facilities · Improved nighttime visibility and safety from streetlights · Creation of individual lots for residential use that, in absence of the Assessments, would not have been created. In this case, the SVTA case provides enhanced clarity to the definitions of special benefits to properties from improvements related to proximity and access. SVTA also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. SVTA City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 10 provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district’s property values). Proximity and improved access strengthen the basis of these assessments. Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive, are 100% special benefit. The assessment-funded services upheld by Dahms included streetscape maintenance and security services. Special Benefits The following special benefits inure to the property in the proposed District. Proximity to improved parks and landscapes Only improvements with close proximity to District are included in the cost estimate. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the Assessments, the Improvements would not be provided and the park and landscapes would be degraded due to insufficient funding for maintenance, upkeep, and repair. Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. Since the parcels in the District enjoy close access to the Improvements, they directly benefit from the areas that are provided through the Assessments. This is a direct advantage and special benefit to property in the District. Extension of a Property’s Outdoor Areas and Green Spaces for Properties within Close Proximity to the Improvements The park and landscaped areas maintained with Assessments provide additional outdoor areas that serve as an effective extension of the land area for proximate properties. The Improvements, therefore, provide an important, valuable, and desirable extension of usable land area for the direct advantage and special benefit of properties with good and close proximity to the Improvements. Improved Safety and Access from Sidewalk and Drainage Facilities The sidewalk and drainage facilities maintained by the Assessments were designed and constructed specifically to provide drainage, access and water quality improvements to serve the property in the District. In the absence of these improvements, there would be no safe pedestrian access to the City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 11 property in the District and there would be no way to remove storm water from the property in the District, increasing the potential for flooding, pooling of stagnant water and vectors. The Improvements provide important, valuable and desirable enhancements to public health and safety directly to the properties in the District, which is a direct advantage and unique benefit. Improved Nighttime Visibility and Safety from Streetlights Well-maintained, effective street lighting provides special benefit to proximate parcels, within the range of the light, because it allows for safer and improved use of the property in the evenings and night. Street lighting also provides special benefit as it increases neighborhood safety and reduces the likelihood of crime on the proximate parcels. Creation of Property for Residential Use that, in Absence of the Assessments, Would Not Have Been Created As discussed above, the Developer has been required to provide a “public service payment” to ensure that improvements that supported the development of its property can be maintained over the life of the development. The Assessments provide a vehicle for ensuring this public service payment can be made. In absence of the Assessments, or a similar mechanism, the property in the District and the Improvements would not have been created. Therefore, the property receives direct advantage and special benefit that is not generally available throughout the City. Calculation of General and Special Benefits Proposition 218 requires an assessing agency to separate the general benefits from the special benefits of a public improvement or service, estimate the quantity of each in relation to the other, and limit the assessment amount to the portion of the improvement or service costs attributable to the special benefits. In the legal decisions known as Golden Hill and Beutz, the California courts have determined that there typically will be some general benefit associated with parks, landscaping and lighting maintenance and improvements because people who don’t reside or own property in an assessment district do receive some, albeit minimal, benefit from the Improvements. The separation and quantification of general and special benefits requires an apportionment of the cost of the service or improvement between the two benefit types. General benefits cannot be funded by assessment revenue. Rather, the funding must come from other sources. This report provides and analysis of how much the general public may reasonably be expected to use or benefit from the improved and maintained areas in relation to the quantity or extent to which property owners within the assessment district use and benefit from the improved and maintained areas. There is no statutory formula for calculating general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. The SVTA decision provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 12 A widely-accepted formula to estimate the general benefit is: Total General Benefit = General Benefit to the public at large + General Benefit to real property outside the district + General Benefit to real property inside the district This formula is used in the discussion below in order to calculate the portion of the costs that should not be borne by the District. General Benefit to the Public at Large The City of Rohnert Park is a planned community with the vast majority of the residential development and parkland located east of Highway 101. The LLD includes a portion of the Residences at Five Creek subdivision, a mixed-use development that located 209 residential units west of Highway 101. The improvements maintained by the District were required as part of the development. The street frontage, lighting and drainage facilities serve only the Adega II development. There would be no need for the improvements to exist and no need to maintain them but for the development project. Because the improvements were solely required because of development and because the larger community experienced no difference in service levels before these improvements were developed, there is no General Benefit attributable to the public at large from the frontage, lighting and drainage improvements. The 0.65-acre park that is maintained by the District is part of the City’s 473.5 acre2 park network. All of the City’s parks, except the one maintained by the LLD, are located east of Highway 101 where they serve the residential developments that are also located east of Highway 101. While many of the City’s parks have regional recreation amenities, including pools, lighted soccer and baseball fields and golf courses, the park maintained by the LLD was intentionally designed to focus on neighborhood serving amenities including a tot lot and a bocce court. While it is possible for residents from the eastern portion of the City to use the park maintained by the LLD, accessing this park would require a vehicle trip across Highway 101. The City acknowledges that the 0.65-acre park benefits both phases of the Adega development (see discussion of General Benefit to Property Outside the District, below). The City also acknowledges that this relatively small, relatively isolated park can also have benefits to the public at large. One way to quantify the benefits to the public at large is to look at the size of the park maintained by the District in the context of the City’s overall park network. This method is quantified below. 0.65 acres/473.5 acres = 0.14% Using this method, the City’s contribution for general benefits to the public at large would be approximately $165/year in current dollars (0.14% of the $119,817 annual park maintenance budget). Another way to quantify the benefits to the public at large is to acknowledge that the City’s DA clearly limits the Developer’s public service payment to $1,002.00/year in current dollars. Under this method 2 City of Rohnert Park, Community Services webpage City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 13 the City’s contribution for benefits to the public at large would provide the difference between the City’s actual costs and the maximum public service contribution and as outlined in the Fiscal Year 2025-26 Budget, above. General Benefit to Property Outside the District The Adega II property, which is the property within the District, receives the special benefits from the Frontage Curb and Gutter, Frontage Sidewalk, Drainage Maintenance & Monitoring and Lighting Improvements because these improvements are located exclusively along the property frontage, are designed to serve only that property and satisfy a required condition of development that allowed the property to be created. But for the creation of the Adega II development, there would be no need for maintenance of the Frontage Curb and Gutter, Frontage Sidewalk, Drainage Maintenance & Monitoring and Lighting Improvements. The benefit of the park and its maintenance is shared with the Adega I Phase 1 development, which is also proximate to the park, receives the benefit of extended green space and was also required to construct and maintain the park. Because Adega I and II are both multi-family developments, the benefit is allocated based on the number of units in each development. Adega I has 135 units and Adega II has 74 units so the benefit to property outside the District is calculate as follows: Number of Units in Adega I/Total Number of Units in Adega I and II or 135/ (135+74) = 64.6% Total General Benefit to Properties Outside of the District =64.6% Using this method, the contribution for general benefits outside the District is approximately $77,400/year in current dollars (64.4% of the $119,817 annual park maintenance budget). General Benefit to Property within the Assessment District The improvements and services funded through the assessments were specifically required, conditioned, designed, located, and constructed to provide additional and improved public resources for property inside the District. While the SVTA decision indicates there may be general benefit “conferred on real property located in the district” when there is property in the district that is used for “regional purposes”, this is not the case for the proposed District. Because improvements and services funded through the assessments were specifically required, conditioned, designed, located, and constructed to provide additional and improved public resources for property inside the District, there is no general benefit associated with property in the District. Total General Benefits The three measures of general benefit are summarized in the table below. The costs associated with these general benefits must come from sources other than the assessment. This contribution offsets any general benefits from the Assessment services. In this case, general benefit contribution offset comes from several sources, including the City of Rohnert Park and Community Facilities District 2019-01 (Westside Services). When these percentages are applied to the total cost of service, the District’s budget for apportionment can be calculated. The budget presented under the title Fiscal Year 2025-26 Estimate of Cost and City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 14 Budgets includes these calculations and the deducts the General Benefit contribution and the City contribution to meet the Development Agreement commitments. The budget also includes an allowance for District Reserves, which is calculated after the General Benefit contribution is removed, and Administration, which is solely attributable to the legal requirements for the District. Total General Benefit Calculation Type of General Benefit Percent of Total Minimum Contribution General Benefits to the Public at Large % Park Maintenance 0.14% $165 Frontage Sidewalk and Curb Maintenance 0% Drainage and Water Quality Maintenance 0% Benefits to Properties outside the District Park Maintenance 64.6% $77,394 Frontage Sidewalk and Curb Maintenance 0% Drainage and Water Quality Maintenance 0% Lighting 0% General Benefits to Properties inside the District 0% Zones of Benefit Since the boundaries of the District were carefully drawn to include the single parcel that receives special benefit from the Improvements, there are no other parcels that could be identified as being in a separate zone of benefit. Method of Assessment and Apportionment As previously discussed, the proposed Assessments will fund maintenance services that clearly confer special benefits to the single parcel in the proposed District. Thus, there are no other parcels to which the assessment may be otherwise apportioned. The District consists entirely of a 74-unit apartment complex and each residential unit receives similar special benefit from the Improvements. Annual Cost Indexing In order to account for inflation, the Method of Assessment explicitly includes that provision that the maximum assessment rate within the District may increase in future years based on the annual increase, if any, in the Northern California (San Francisco-Oakland-Hayward) Consumer Price Index-All Urban Consumers (the “CPI”), from May to May off each year. Duration of Assessment The Assessments, if approved by the property owner, will be continued every year after their formation, so long as the public Improvements need to be maintained and improved, and the City requires funding from the Assessments for these Improvements in the District. As noted previously, the Assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report. In addition, the City Council must hold an annual public hearing to continue the levying the Assessment. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 15 Assessment Funds Expended on Benefitting Maintenance Activities The net available Assessment funds, after incidental, administrative, financing, and other costs shall be expended exclusively for Improvements that provide special benefit to the property within the boundaries of the District as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. Beyond the first fiscal year of the District, authorized expenditures of Assessment funds shall be subsequently established in accordance with the requirements of the Act related to the levy of annual assessments (beginning at Streets and Highways Code Sections 22620) and Proposition 218. Oversite, Annual Review and Accountability The District, including its Assessment budget, Assessment rate, Assessment CPI increase, and Improvements are reviewed annually at a noticed public hearing. The Assessments cannot continue in subsequent years unless the City Council affirmatively approves, at a noticed public hearing, an updated Engineer’s Report with updated budgets, costs and an updated Assessment roll listing all parcels and their Assessments. The updated annual assessments may not exceed the maximum assessment established in this Report, adjusted for inflation by the CPI. At the annual public hearing, members of the public can provide input to the Council prior to the Council’s decision on ordering the Improvements and the Assessments for the next Fiscal Year. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 16 Assessment WHEREAS, the City Council of the City of Rohnert Park, County of Sonoma, State of California, pursuant to the provisions of the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution (collectively “the Act”), adopted its Resolution Initiating Proceedings for the Formation of the City of Rohnert Park Landscaping and Lighting District 2024-01 (Westside Services) for Fiscal Year 2025-26 (the “Assessment District”); WHEREAS, the Resolution Initiating Proceedings directed the undersigned Engineer of Work to prepare and file a report presenting a description of the Improvements, an estimate of the costs of the Improvements, a diagram for the Assessment District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the Assessment District; WHEREAS, the undersigned Engineer of Work prepared this Engineer’s Report for the Assessment District in accordance with the Resolution Initiating Proceedings. NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act and the order of the City Council of the City of Rohnert Park, hereby assess the net amount upon the one assessable parcel of land within the District to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the Assessment District. This assessment is subject to the City Council’s approval following its consideration of evidence at a duly noticed public hearing, considering any protest ballots submitted prior to the conclusion of the public input portion of the public hearing. The estimate of the total costs of the Improvements and related incidental expense to be paid from Assessment revenue from the District, as well as corresponding costs to be paid from sources other than the District, for the fiscal year 2025-26 is listed below. As required by the Act, the Assessment Diagram is hereto attached and made a part hereof showing the exterior boundaries of the District which includes one parcel. The distinctive number of the parcel of land in the Assessment District is its Assessor Parcel Number appearing on the Assessment Roll. Description Budgeted Cost (Contribution) Park and Streetscape Maintenance $ 119,816.63 Storm Drainage Maintenance and Monitoring $ 10,080.00 Lighting $ 1,500.00 Total Operations & Maintenance Budget $ 133,623.00 City Contribution for General Benefits to the Public $ (7,443.00) General Benefit Contribution for Parks & Streetscapes $ (77,394.00) Reserves $ 13,362.00 Annual Administration $ 12,000.00 Total Budget to Assessment $ 74,148.00 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 17 As required by the Act, the Plans and Specifications for the Improvements showing and describing the general nature, location, and extent of the existing and proposed improvements are incorporated in this Engineer’s Report, and are hereto attached and made a part hereof. I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the related incidental expenses, upon the single parcel of land within the District, in accordance with the special benefits to be received by that parcel, from the Improvements, and more particularly set forth in the Cost Estimate and Method of Assessment in the Report. The assessment is made upon the parcel of land within the District in proportion to the special benefits to be received by the parcel of land, from the Improvements. The Assessment is subject to an annual increase tied to the Consumer Price Index-All Urban Consumers for Northern California (San Francisco-Oakland-Hayward) as of December of each succeeding year (the “CPI”). The parcel of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Sonoma for the fiscal year 2024-25. For a more particular description of the parcel, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of Calaveras County. Dated: July 9, 2024 By Mary Grace Pawson PE, RCE: C044573 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 18 Assessment Diagram The District Boundary and the parcels to be assessed in City of Rohnert Park Landscaping and Lighting District No 2024-01 (Westside Services) are displayed on the Assessment Diagram, which is on file with the City Clerk of the City of Rohnert Park. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Assessor of the County of Sonoma for Fiscal Year 2024-25, and are incorporated herein by reference, and made a part of this Diagram and this Report. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 19 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 20 Assessment Roll - FY 2025-26 An Assessment Roll (a listing of all parcels assessed within the Assessment District and the amount of the assessment) is below. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference made part of this Report. These records shall govern for all details concerning the description of the parcel. Assessment Roll City of Rohnert Park Landscape and Lighting District 2024-01 (Westside Services) Assessor’s Parcel Number Site Address Owner’s Name Multi- Family Residential Units Assessment per Unit Total Assessment 143-040-139 591-641 Carlson Ave 74 $1002.00 $74,148.00 ITEM NO. 8.B. 1 Meeting Date: July 23, 2024 Department: Development Services Submitted By: Alicia Giudice, Development Services Director Prepared By: Mary Grace Pawson, Planning Manager Agenda Title: Consider Adopting a Resolution Adopting a Proposition 218 Ballot Procedures and a Resolution Declaring Intention to Form Landscape & Lighting District No. 2024-01 (Westside Services), Preliminarily Approving the Engineer’s Report, Providing Notice Public Hearing and Ordering the Mailing of Assessment Ballots. RECOMMENDED ACTION: Adopt the following resolutions: 1. Resolution Adopting Proposition 218 Ballot Proceeding Procedures 2. Resolution Declaring Intention to Form Landscape & Lighting District No. 2024-01 (Westside Services), Preliminarily Approving the Engineer’s Report, Providing Notice Public Hearing and Ordering the Mailing of Assessment Ballots BACKGROUND: The Landscape and Lighting Act of 1972 (Division 15, Part 2, beginning at Section 22500 of the Streets and Highways Code of the State of California- hereinafter the “Act”), is the statutory framework that provides the authority and describes the methodology that local agencies may use to form Landscape and Lighting Districts and levy special assessments on property within the districts. Under the Act, Landscape and Lighting Districts (“LLDs”) may be used to fund the provision of certain authorized public improvements or services, including the purchase, construction, expansion, improvement, rehabilitation, or maintenance of public facilities. Under Articles XIIIC and XIIID of the California Constitution (Proposition 218) if there is a majority protest filed in writing by property owners in a proposed LLD, the City may not approve the LLD. On January 24, 2017, the City Council adopted Ordinance Number 903, approving a Development Agreement with Stadium RP Development Partners, LLC (“developer”) for the Residences at Five Creek (“project”), a mixed-use project consisting of three main components: a hotel, a 135-unit multi- family residential development (commonly known as Adega I); and a commercial and retail development complex. The Development Agreement provided for a Public Service Payment to the City equal to the amount of eight hundred dollars per residential unit per year ($800.00/unit/year), subject to annual adjustment based on the San Francisco Bay Area Consumer Price Index (the “Public Service Payment” has escalated to $1,002.00 in Fiscal Year 2024-25). The Public Service Payment was calculated to fund the difference between the City’s costs in providing public improvements and services to the residential component of the project, and the revenue generated by residential Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 8.B. 2 development (primarily property tax). While the calculated Public Service Payment does not cover 100% of the City’s costs, it should be sufficient to avoid an additional demand on City’s General Fund. On March 10, 2020, City Council adopted Ordinance No. 946 approving the first amendment to the Development Agreement, which provided for rezoning a portion of the site from commercial to residential to allow for the development of 74 additional multi-family residential units (commonly known as Adega II). Among other things, the first amendment to the Development Agreement requires the developer to implement the same public service payment provisions for the additional residential property. The Adega II development is in the process of being finalized and staff and the developer have determined that an LLD is the best vehicle for ensuring the developer can comply with the DA requirement to establish an ongoing funding mechanism to ensure the required “public services payment” can be made annually. On July 9, 2024, the City Council adopted a Resolution of Initiation, which formally began the process of forming an LLD and directed the preparation of an Engineer’s Report. Staff is now requesting that the City Council take action to establish assessment balloting procedures for the LLD, preliminarily approve the Engineer’s Report and start the assessment balloting process. ANALYSIS: Staff is requesting that the City Council adopt two resolutions that will support the assessment balloting process and the formation of the District. These are described below. Resolution Adopting Proposition 218 Balloting Process Procedures: As noted above, the formation of all LLDs is also subject to the requirements of Proposition 218. Proposition 218 provides property owners within the District with the right to vote to support or oppose the proposed assessments through a “majority protest” public hearing process. Votes are weighted by the value of the assessment (e.g., a larger assessment carries more weight). The City Council may approve the formation of an LLD as long as the majority of the ballots returned, and weighted by the value of the assessment, do not oppose the formation. In order to provide clarity and consistency for the process of preparing, mailing and tabulating the ballots, staff is proposing that the City adopt balloting procedures. These procedures describe: · The contents of the required notice and ballot · The process for mailing the ballots · The process for owners to return to the ballots · The process of tabulating the ballots, including the process to use when multiple owners choose to split their ballots. In this particular case, the District contains only one property and its owner is cooperating with the City to form the LLD and satisfy its DA. However, the recommended procedures will provide clarity for staff in the Development Services Department and City Clerk’s office and provide a consistent framework for administering any future assessment ballot processes. Resolution Preliminarily Approving the Engineer’s Report: The Engineer’s Report contains all of the information about the improvements to be maintained, the cost of the maintenance work, the unique special benefit received by property in the District to be funded by assessment revenue, and any financial contributions that will be made from non-assessment revenue for “general benefits” to property outside the District. The Engineer’s Report then uses this information to calculate the ITEM NO. 8.B. 3 assessment for each property in the LLD. The Engineer’s Report has been prepared in in accordance with Article 4 of Chapter 1 of the Act and Proposition 218. The major findings are summarized below. Improvements to be Maintained: The improvements to be maintained with the assessments include the westside park, streetscape and sidewalk frontage adjacent to the Adega II development, the stormwater system serving the Adega II development, the streetlighting adjacent to the Adega II development and an allowance for reserves and District administration. Cost of the Maintenance Activities: The estimated cost of the maintenance activities is $133,623.00. The reserve allowance is $13,362.00. The annual administration activity which includes development of a budget, preparation of an annual report and coordination with County to place the assessment on the tax roll is $12,000.00 General Benefits from the Maintenance Activities: Because the Adega I development also benefits from the park improvements, it has a share of the benefits associated with the park improvements. The Engineer’s Report calculates this benefit at $77,394.00. The Adega I development established the Westside CFD in 2019 as its vehicle for making the required public service payment that will provide its contribution. Because the public at large also receives some small benefit from the public park, the Engineer’s Report calculates a contribution of $7,443.00 for this benefit. Special Benefits from the Maintenance Activities: The Engineer’s Report defines the Special Benefits as follows: · Creation of property for residential use that, in absence of the assessments, would not have b een created · Proximity to improved parks and landscapes · Extension of the property’s outdoor areas and green spaces for properties with close p roximity to the improvements · Improved safety and access from sidewalk and drainage facilities · Improved v isibility and s afety from s treetlights. The Engineer’s Report calculates the value of the special benefits of the maintenance activity at $48,786.00. The district specific reserves and administration costs are also special benefits because the City would not incur these costs but for the benefitting property. Summary Budget for the Proposed LLD: The budget for the proposed LLD is presented below and incudes the total maintenance and operation costs, the contributions for general benefits and the reserve and administration costs. ITEM NO. 8.B. 4 Maximum Assessment Proposed: The maximum assessment for the first fiscal year is proposed at $1,002.00/multi-family unit which results in a total assessment of $74,148.08 for the one parcel in the District. The assessment is proposed to include an annual increase tied to the Consumer Price Index- All Urban Consumers for Norther California (San Francisco-Oakland-Hayward) (“CPI”). Next Steps: Because both the developer and staff are working to complete and close out the Adega II project, staff will begin the assessment ballot process upon approval from City Council. The assessment ballot will be mailed to the property owner in the District (who is also the developer). The ballot will be due back to the City on or before the Public Hearing scheduled for September 10, 2024, which allows for the 45-day balloting period required by law. Immediately after the Public Hearing, the City Clerk will tabulate assessment ballots. If the majority of the ballots, weighted by dollar amount of assessment per parcel, are not in protest of the assessment, the City Council will proceed to adopt its Resolution of Formation and staff will complete final recording actions. Because of the timing for the district’s formation, the assessment will not be able to be collected on the tax roll for Fiscal Year 2024-2025. However, because the district involves a single owner with a single Landscape & Lighting District 2024-01 (Westside Residential) Fiscal Year 2025-26 Budget Estimate Description Unit Unit Cost Total Park Maintenance Park & Streetscape Maintenace 3 person crew day*1,680.00$ 30 days/year 50,400.00$ Irrigation Water**LS 3,200.00$ 1 each 3,200.00$ Mulch Replacement (2 years)LS 6,741.95$ 1 each 6,741.95$ Bocce Court Material Replacement (2 years)LS 12,877.06$ 1 each 12,877.06$ Planting Replacement (10 years)LS 7,119.50$ 1 each 7,119.50$ Turf Replacement (10 years)LS 2,739.24$ 1 each 2,739.24$ Playground Fall Material Replacement (5 years)LS 5,281.70$ 1 each 5,281.70$ Playground Equipment Replacement (10 years)LS 1,404.57$ 1 each 1,404.57$ Gazebo Structure Replacement (25 years)LS 2,043.01$ 1 each 2,043.01$ Tables/Benches/ Bike Racks/Trash/Fence Replacement (15 years)LS 6,670.87$ 1 each 6,670.87$ Drinking Fountain Replacement (5 years)LS 4,086.03$ 1 each 4,086.03$ Underground Utilities Replacement (40 years)LS 1,113.39$ 1 each 1,113.39$ Park Pathway and Wall Replacement (50 years)LS 1,690.65$ 1 each 1,690.65$ Frontage Curb/Gutter Replacement (50 years)LF 85.00$ 379.22 LF 6,446.74$ Frontage Sidewalk Replacement (50 years)SF 10.00$ 4000.96 SF 8,001.91$ Subtotal Park Maintenance (rounded to nearest dollar)119,817.00$ Street Frontage Maintenance (Adega II only) Frontage Curb/Gutter Replacement (50 years)LF 85.00$ 838.82 LF 1,425.99$ Frontage Sidewalk Replacement (50 years)SF 10.00$ 4000.96 SF 800.19$ Storm Drainage Maintenace & Monitoring 3 person crew day*1,680.00$ 6 days/year 10,080.00$ Lighting Street Light Replacement each 5,000.00$ 1 5 years 1,000.00$ Street Light Electricity LS 500.00$ 1 each 500.00$ Total Maintenance and Operations Budget 133,623.00$ City Contribution for General Benefits to the Public LS (7,443.00)$ 1 each (7,443.00)$ General Benefit Contribution for Park Maintenance & Reserves LS (77,393.76)$ 1 each (77,394.00)$ Reserves (10% allowance)LS 13,362.00$ 1 each 13,362.00$ Annual Administration (benefit to LLD only)LS 12,000.00$ 1 each 12,000.00$ Budget to Assessment 74,148.00$ *Calculated at $70/hr($34/hr salary + benefits and overhead) **Calculated based on water use patterns of .65 acres of irrigated landscape @ 2.9 af/acre/year @ recycled water rates Quantity ITEM NO. 8.B. 5 assessment, staff will work with the developer to “hand bill” the amount owed by the developer under the Development Agreement for Fiscal Year 2024-25. In subsequent years, beginning in Fiscal Year 2025-2026, the assessment will be able to be collected on the tax role. ENVIRONMENTAL ANALYSIS: Adoption of the proposed resolution is not a “project” under California Environmental Quality Act (CEQA) Guidelines section 15378. The resolution approves a funding mechanism for ongoing maintenance and services including water quality compliance services (see 15378(b)(4)) and there is no potential that approval of the proposed agreement will result in a direct or indirect physical change to the environment. STRATEGIC PLAN AND COUNCIL GOALS/PRIORITIES ALIGNMENT: The proposed action is consistent with the City’s Councils goals for Long Term Financial Sustainability, Community Quality of Life and Planning and Infrastructure because it provides a funding source for maintenance activities that both relieves burden on the General Fund and ensures infrastructure is well maintained in the developing westside neighborhoods. OPTIONS CONSIDERED: None. The recommended action is necessary to satisfy the requirements of the Development Agreement as amended. FISCAL IMPACT/FUNDING SOURCE: The proposed action will have a current positive fiscal impact of $74,148/year. The City will have the ability to escalate the assessment consistent with increases in the Consumer Price Index, beginning in Fiscal Year 26-27. The proposed action will provide a funding source for ongoing maintenance, rehabilitation and repair activity in the Stadium Lands Master Plan Area. Code Compliance Approval Date: NA Department Head Approval Date: 07/09/2024 Finance Approval Date: NA Human Resources Approval Date: NA City Attorney Approval Date: 07/05/2024 City Manager Approval Date: 07/15/2024 Attachments: 1. Resolution Adopting Proposition 218 Ballot Proceeding Procedures 2. Resolution Declaring Intention to Form Landscape & Lighting District No. 2024-01 (Westside Services), Preliminarily Approving the Engineer’s Report, Providing Notice Public Hearing and Ordering the Mailing of Assessment Ballots 3. Resolution of Intention Exhibit A – Engineer’s Report RESOLUTION NO. 2024-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK ADOPTING PROPOSITION 218 ASSESSMENT BALLOT PROCEEDING PROCEDURES WHEREAS, by Resolution No. 2024-054, approved on July 9, 2024, the City Council ordered the initiation of proceedings for the formation of Landscape and Lighting District No. 2024-01 (Westside Services) pursuant to the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of the California Streets and Highways Code (commencing with § 22500 thereof) (“Act”); and WHEREAS, the proposed landscaping maintenance assessment shall be described as “Landscape and Lighting District 2024-01 (Westside Services)” of the City of Rohnert Park (hereinafter the “Assessment District”); and WHEREAS, Proposition 218 was adopted on November 6, 1996, adding Articles XIIIC and XIIID to the California Constitution, which impose certain procedural and substantive requirements relating to assessments (as defined); and WHEREAS, the City believes it to be in the best interests of the City and its property owners to confirm and memorialize the City’s procedures and guidelines regarding implementation of the provisions of Proposition 218 and pertinent statutes relating to assessments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park as follows: SECTION 1: The above Recitals are in all respects true and correct. SECTION 2: Statement of Legislative Intent: In adopting this resolution, it is the City Council’s intent to adopt assessment ballot proceedings, which are consistent and in compliance with Articles XIIIC and XIIID of the California Constitution and with Government Code §§ 53750 through 53754. It is not the intent of the City Council to vary in any way from the requirements of either the California Constitution or the laws of the State of California. If there is any inconsistency of each between this resolution and state law, state law will govern. SECTION 3: Definition of Assessment: Proposition 218 defines “assessment” as “any levy or charge by an agency upon real property for the reasonable costs of the proportional special benefit conferred upon the real property. The special benefits may include the capital cost of the public improvement, the maintenance and operation expenses of the public improvement or the cost of the property related service being provided.” “Assessment” includes, but is not limited to, “special assessment,” “benefit assessment,” “maintenance assessment,” and “special assessment tax.” SECTION 4: Assessment Ballot Proceeding: The following procedures shall be used in an assessment ballot proceeding that follows the requirements of California Constitution, Article XIIID, § 4: A. Amount of Assessment: Only special benefits are assessable. The amount of assessment shall be each identified parcel’s proportionate share of the cost of the improvements and services conferred upon that parcel. The amount shall be proportional to, and no greater than, the special benefits conferred on each parcel. B. Engineer’s Report: The City Council shall direct the filing of an engineer’s report that shall comply with the applicable state statute(s) authorizing the assessment and with California Resolution 2024-062 Page 2 of 6 Constitution, Article XIIID, § 4. The engineer’s report shall explain the special benefits conferred by the improvements and/or services funded by the assessments. The engineer’s report shall also provide the evidence upon which the City Council may find that a special benefit exists. If the improvement or service confers a general benefit, the engineer’s report shall describe the general benefit and an alternative funding source for any general benefits. The engineer’s report shall be prepared by a registered professional engineer certified by the State of California, (“Engineer of Work”). The cost of preparing the engineer’s report shall be included as a cost of the assessment. C. Notice: The following guidelines shall apply to giving notice of an assessment: 1. The record owner(s) of each parcel to be assessed shall be determined from the last equalized secured property tax roll. (See Government Code § 53750(j).) If the property tax roll indicates more than one owner, each owner shall receive notice. Only property owners shall receive notice; 2. The notice shall be sent at least forty-five (45) days prior to the date set for the public hearing on the City Council action to impose the proposed assessment; 3. The notice provided by this Section 4(C) of this resolution shall contain the following information: a. The total amount to be assessed for the entire assessment district; b. The amount to be assessed to the owner’s particular parcel; c. The duration of the payments; d. The reason for the assessment; e. The basis upon which the amount of the proposed assessment was calculated; f. The date, time. and location of the public hearing on the proposed assessment; g. A summary of the procedures for the completion, return and tabulation of the assessment ballots; h. A disclosure statement that the existence of a majority protest will result in the assessment not being imposed; and i. A ballot to be completed by the owner, as further described in Section 4(D) of this resolution. [All subsequent references to “Section” shall be “of this resolution” unless specifically identified otherwise.] 4. The notice provided by this Section 4(C) and in accordance with California Code §§ 53753(b) and (c) shall supersede and be in lieu of any other statutes requiring notice to levy or increase an assessment, including but not limited to the notice required by the state statute authorizing the assessment and California Government Code § 54954.6; 5. Failure of any person to receive notice shall not invalidate the proceedings; 6. The cost of providing notice shall be included as a cost of the assessment. D. Assessment Ballot: The following guidelines shall apply to the assessment ballot: 1. The ballot required by Article XIIID, § 4(d), of the California Constitution shall be mailed to all record owners subject to the proposed assessment at least forty-five (45) days prior to the date of the public hearing on the proposed assessment. Said ballot shall Resolution 2024-062 Page 3 of 6 comply with the requirements of California Government Code §§ 53753(b) and (c). The ballot shall be designed in such a way that, once sealed, its contents are concealed. 2. All ballots must be returned either by mail or by hand delivery, and received by the City Clerk not later than the date and time for return of ballots stated on the notice and ballot described in this section. Mailed ballots must be returned to City of Rohnert Park, City Clerk, 130 Avram Avenue, Rohnert Park, CA 94928. Hand delivered ballots may be returned to the City Clerk at the time and location of the public hearing, to be held at the Rohnert Park City Hall located at 130 Avram Avenue, Rohnert Park, CA. Ballots must be received by the City Clerk, either by mail or by hand delivery, prior to the conclusion of the public input portion of the public hearing. The City Clerk (“Tabulator”) shall tabulate the ballots upon the close of the public input portion of the public hearing. 3. Each ballot must be signed under penalty of perjury. In the event that more than one (1) of the record owners of a parcel submits an assessment ballot, the amount of the proposed assessment to be imposed upon the parcel shall be allocated to each ballot submitted in proportion to the respective record ownership interests as shown on the last equalized secured property tax assessment role unless the record owner submits to the City Clerk documentation that establishes to the satisfaction of the City Council a different proportion of record ownership interests. If two (2) or more persons own a parcel subject to the assessment, any one (1) owner may cast an assessment ballot for all owners. 4. If a parcel has multiple owners, any owner may request and return a proportional assessment ballot. If the ownership interest of the owner is not shown on the last equalized secured property tax assessment roll, such request must include evidence, satisfactory to the Engineer of Work, of the owner's proportional rights in the parcel. The Engineer of Work will provide the proportional ballot to the owner at the address shown on the assessment roll. Any request for a ballot to be mailed to another location must include evidence, satisfactory to the Engineer of Work, of the identity of the person requesting the ballot. Each proportional ballot will be marked to identify it as a proportional ballot and to indicate the owner’s proportional rights in the parcel. The Engineer of Work shall keep a record of each proportional ballot provided to an owner. 5. The City will only accept official ballots mailed or otherwise provided to owners by the Engineer of Work. 6. If an assessment ballot is lost, withdrawn, destroyed, or never received, the Engineer of Work will mail or otherwise provide a replacement ballot to the owner upon receipt of a request delivered to the City Clerk or the Engineer of Work. The replacement ballot will be marked to identify it as a replacement ballot or a replacement proportional ballot. Any request for a replacement or replacement proportional ballot to be mailed to another location must include evidence, satisfactory to the Engineer of Work of the identity of the person requesting the ballot. The same procedure applies to replacement ballots or replacement proportional ballots, which are lost, withdrawn, destroyed, or never received. 7. If an assessment ballot is returned by the United States Post Office as undeliverable, the Engineer of Work may mail a redelivered ballot to the current property owner, if updated ownership or owner mailing address can be determined. The redelivered ballot Resolution 2024-062 Page 4 of 6 will be marked to identify it as a redelivered ballot. 8. An assessment ballot proceeding is not an election or voting for purposes of Article II of the California Constitution or of the Elections Code. 9. An assessment ballot is a disclosable “public record” as that phrase is defined by California Government Code § 6252 during and after tabulation of the ballots. 10. The California Government Code requires that assessment ballots be signed by property owners. However, property owner names and corresponding votes will remain confidential, except as necessary to count the votes or as disclosure is required by California law. 11. To complete an assessment ballot, the owner of the parcel or his or her authorized representative must (1) mark the appropriate box (or circle) supporting or opposing the proposed assessment, and (2) sign, under penalty of perjury, the statement on the ballot that the person completing the ballot is the owner of the parcel or the owner’s authorized representative. Only one (1) box (or circle) may be stamped or marked on each ballot. All incomplete or improperly marked ballots shall be disqualified from balloting. The Tabulator will retain all such invalid ballots. 12. After returning an assessment ballot to the City (in accordance with Section 4(D)(2)), the person who signed the ballot may withdraw the ballot by submitting a written statement to the City Clerk directing the City to withdraw the ballot. Such statement must be received by the City Clerk (in accordance with the procedures for returning assessment ballots to the City under Section 4(D)(2)). When ballots for the assessment are tabulated, the Tabulator will segregate withdrawn ballots from all other returned ballots. The Tabulator will retain all withdrawn ballots and will indicate on the face of such withdrawn ballots that they have been withdrawn. 13. In order to change the contents of a ballot that has been submitted, the person who has signed that ballot may (1) direct the City to withdraw the ballot (in accordance with Section 4(D)(12)), (2) request that the City Clerk issue a replacement ballot, and (3) return the replacement ballot fully completed. Each of these steps must be completed according to the procedures set forth above so that the fully completed replacement ballot is received by the City Clerk in accordance with Section 4(D)(2). E. Tabulating Ballots: The following guidelines shall apply to tabulating assessment ballots: 1. Assessment ballots shall remain sealed until ballot tabulation commences. Ballot tabulation shall not commence until after the conclusion of the public input portion of the public hearing. Once the first ballot is unsealed, no ballots may be modified, and all timely and valid ballots shall be tabulated in accordance with this resolution. 2. The City Clerk (as the Tabulator) shall oversee and direct the tabulation of the assessment ballots. The Tabulator shall follow the rules and procedures of the laws of the State of California, this Resolution and any other rules and procedures of the City Council. If the Tabulator needs clarification, then he or she shall inquire of the City Council, which is the final arbiter. The following categories of submissions shall be deemed to be invalid and not tabulated as an assessment ballot: a. Any form of a ballot that is not an official ballot provided by the City in Resolution 2024-062 Page 5 of 6 accordance with this resolution (this means a photocopy of a ballot, or a letter, is not a valid ballot); b. An unsigned ballot, or ballot signed by an unauthorized individual; c. A ballot which lacks an identifiable mark in the box for a “yes” or “no” vote or with more than one (1) box marked, will not be counted; d. A ballot which appears tampered with or otherwise invalid based upon its appearance or method of delivery or other circumstances; e. A ballot for which the barcode representing the parcel number is damaged or obstructed, unless the parcel number or property ownership information is legible and allows the Tabulator to clearly determine the property(s) identified on the ballot. f. A ballot received after the close of the balloting time period. 3. If more than one (1) of the record owners of a parcel submits an assessment ballot, the amount of the proposed assessment to be imposed upon the parcel shall be allocated to each ballot in accordance with Section 4(D)(3) and 4(D)(4). 4. In the event of a dispute regarding whether the signer of a ballot is the owner of the parcel to which the ballot applies, the City Council will make such determination from the official County Assessor records and any evidence of ownership submitted to the City Council prior to the conclusion of the public hearing. The City Council shall be under no duty to obtain or consider any other evidence as to ownership of property and its determination of ownership will be final and conclusive. 5. In the event of a dispute regarding whether the signer of a ballot is an authorized representative of the owner of the parcel, or any other dispute regarding the validity of any ballot, the City Council may rely on: (a) the statement on the ballot signed under penalty of perjury that the person completing the ballot is the owner’s authorized representative, and (b) any evidence submitted to the City Council prior to the conclusion of the public input portion of the public hearing. The City Council will be under no duty to obtain or consider any other evidence to resolve the dispute, and its determination will be final and conclusive. 6. A property owner who has submitted an assessment ballot may withdraw the ballot and submit a new or changed ballot up until the conclusion of the public input portion of the public hearing on the assessment in accordance with Sections 4(D)(12) and 4(D)(13). 7. A property owner’s failure to receive an assessment ballot shall not invalidate the proceedings conducted under this section and California Constitution Article XIIID, § 4 8. The City shall retain all ballots for a period of two (2) years from the date of the public hearing. F. Public Hearing. 1. At the public hearing, the City Council shall hear and consider all public testimony, objections and protests regarding the proposed assessment and accept ballots until the close of the public input portion of the public hearing. Resolution 2024-062 Page 6 of 6 2. Reasonable time limits may be imposed on both the length of the entire hearing and the length of each speaker’s testimony. 3. At the conclusion of the public input portion of the hearing, but prior to the conclusion of the public hearing, the City Council will direct the Tabulator to unseal and tabulate all valid ballots in public view so as to permit all interested persons to meaningfully monitor the accuracy of the tabulation process. 4. If it is not possible to tabulate the ballots on the day of the public hearing, or if additional time is necessary for public testimony, the City Council may continue the public hearing from time to time in order to receive additional testimony, information, or to finish tabulating the ballots. 5. If, according to the final tabulation of the ballots, ballots submitted against the assessment exceed the ballots submitted in favor of the assessment, weighted according to the proportional financial obligation of each affected parcel, a “majority protest” exists and the City Council shall not impose the assessment. DULY AND REGULARLY ADOPTED this 23rd day of July, 2024. CITY OF ROHNERT PARK ____________________________________ ATTEST: Susan H. Adams, Mayor ______________________________ Sylvia Lopez Cuevas, City Clerk APPROVED AS TO FORM: ______________________________ Michelle M. Kenyon, City Attorney ELWARD: _________ RODRIGUEZ: _________SANBORN: _________ GIUDICE: _________ ADAMS: _________ AYES: ( ) NOES: ( ) ABSENT: ( ) ABSTAIN: ( ) RESOLUTION NO. 2024-063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK DECLARING ITS INTENTION TO FORM LANDSCAPING AND LIGHTING DISTRICT NO. 2024-01 (WESTSIDE SERVICES) AND LEVY ASSESSMENTS, PRELIMINARILY APPROVING THE ENGINEER’S REPORT, PROVIDING NOTICE OF PUBLIC HEARING AND ORDERING THE MAILING OF THE ASSESSMENT BALLOTS WHEREAS, by Resolution No. 2024-054, approved on July 9, 2024 (“Resolution of Initiation”), the City Council ordered the initiation of proceedings for the formation of Landscape and Lighting District No. 2024-01 (Westside Services) pursuant to the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of the California Streets and Highways Code (commencing with § 22500 thereof) (“Act”); and WHEREAS, the proposed landscaping maintenance assessment shall be described as “Landscape and Lighting District No. 2024-01 (Westside Services)” of the City of Rohnert Park (hereinafter the “Assessment District”) which is generally located at the northwest corner of the intersection of Dowdell and Martin Avenues; and WHEREAS, Proposition 218 was adopted on November 6, 1996, adding Articles XIIIC and XIIID to the California Constitution, which impose certain procedural and substantive requirements relating to assessments (as defined)’ and WHEREAS, the Landscape and Lighting District No. 2024-01 (Westside Services) is intended to satisfy the requirements of a Development Agreement between the City of Rohnert Park and Stadium Partners LP to provide a mechanism for funding the City’s costs of providing special benefits for new development on the single parcel included within the Assessment District boundaries; and WHEREAS, an Engineer’s Report (“Report”) has been prepared by Mary Grace Pawson, P.E., a registered, professional engineer with the City’s Development Services Department (“Assessment Engineer”) and submitted to the City Council, in which an assessment is proposed to fund the cost of the installation, maintenance and servicing of improvements as described in Section 3 below. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park as follows: SECTION 1: The above Recitals are in all respects true and correct. SECTION 2: Reference to Initiation and Approval of the Engineer’s Report. In accordance with direction from the City Council set forth in the Resolution of Initiation, Mary Grace Pawson PE with the City’s Development Services Department, (“Engineer of Work”), prepared an “Engineer’s Report – City of Rohnert Park Landscape and Lighting District 2024-01 (Westside Services)” (“Report”) pursuant to the Act and Article XIIID of the California Constitution. The Report has been prepared, filed with the City Clerk, reviewed, and duly considered by the City Council and is hereby deemed sufficient and approved for the preliminary purposes required by Streets and Highways Code Section 22586. The Report shall stand as the Engineer’s Report for all subsequent proceedings under Resolution 2024-063 Page 2 of 4 and pursuant to this Resolution. SECTION 3: Description of the Improvements: The purpose of the Assessment District is to provide for the installation, maintenance, and servicing of improvements. The District benefits from improvements (“Improvements”) that are generally described as the installation, maintenance, and servicing of public improvements and facilities, including but not limited to, landscaping, sprinkler systems, park grounds, park facilities, playground equipment, landscape corridors, sidewalks, curbs and gutters, storm drainage systems, public lighting facilities, frontage and retention walls, other landscaping facilities, and related labor, materials, supplies, utilities, equipment, and incidental expenses. Under the Act, “Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Under the Act, “Servicing” means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. SECTION 4: Reference to Engineer’s Report: The Report is hereby incorporated by reference. Reference is hereby made to the Report for a full and detailed description of the Improvements (including the plans and specifications), the boundaries of the Assessment District and the proposed assessments upon assessable lots and parcels of land within the Assessment District. Reference is also hereby made to the Report for an estimate of the costs of the Improvements proposed to be financed from the proceeds of the proposed assessment. SECTION 5: Report of the Assessment Engineer: The Report is available for public review at the City of Rohnert Park City Hall, located at 130 Avram Avenue, Rohnert Park, CA 95408. The Engineer’s Report includes: A. A description of the Improvements to be funded with assessment proceeds, services, and incidental costs; and B. An estimate of the annual cost of such Improvements; and C. A description of each assessable parcel of land within the District and proposed to be subject to the assessment; and D. A description of the proportionate special and general benefits conferred on property by the proposed assessment; and E. A description of the boundaries of the proposed Assessment District, which is the diagram for the assessment district; and F. A specification of the amount to be assessed upon various types of assessable land to fund the cost of the Improvements; and G. The proposed method and formula of assessing the costs and expenses of the Resolution 2024-063 Page 3 of 4 Improvements to the properties which will specially benefit from the Improvements. SECTION 6: Description of Assessment District: The Assessment District consists of the single parcel shown on the boundary map diagram of the Assessment District on file with the City Clerk, and reference is hereby made to such map for further particulars. SECTION 7: Proposed Assessment Rate: It is the intention of this City Council to levy and collect assessments within the Assessment District. The estimated Fiscal Year 2025-26 cost of providing the Improvements, less contributions for general benefits, is $74,148.08. Said estimated cost results in a proposed assessment rate of $74,148.08 for the one parcel within the Assessment District for Fiscal Year 2025-26. It is the further intention of the City to have the assessment collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, its general taxes. SECTION 8: Public Hearing: notice is hereby given that the public hearing on the proposed assessment shall be held before the City Council of the City of Rohnert Park at Rohnert Park City Hall, located at 130 Avram Avenue, Rohnert Park, California on Tuesday, September 10, 2024 at the hour of 5:00 p.m., or as soon thereafter as the matter may be heard, for the purpose of this City Council’s determination of whether the public interest, convenience and necessity require the improvements and the City Council’s final action upon the Report and the assessments therein. All interested people shall be afforded the opportunity to hear and be heard. Any interested person may file a written protest with the City Clerk, or, having previously filed a protest, may file a written withdrawal of that protest, prior to the conclusion of the public input portion of the public hearing. A written protest shall state all grounds of objection. A protest by a record owner of property within the proposed Assessment District shall contain a description sufficient to identify the property owned by the signer thereof. The City Council shall consider all oral statements and all written protests made or filed by any interested person. SECTION 9: Notice and Ballot: The City Clerk hereby is authorized and directed to cause Notice of the hearing ordered under Section 8 hereof to be given in accordance with law by United States Mail, and such Notice shall be deemed to have been given when so deposited in the United States Mail. The envelope or cover of the mailing shall include the name of the City. The mailed Notice shall be given to the property owner of the single assessable parcel within the Assessment District by such mailing by name to those persons whose names and addresses appear on the last equalized secured property tax assessment roll of Sonoma County. The Notice shall include, but not be limited to, the total amount of assessment proposed to be levied in the Assessment District for fiscal year 2025-26, the assessment proposed for the owner’s particular parcel(s) and the duration thereof and the reason for the assessment. Each Notice shall also contain the proposed assessment and the basis upon which the amount of the assessment was calculated. Each Notice shall also contain an assessment ballot, a summary of the procedures applicable to the completion, return and tabulation of assessment ballots, the date, time, and location of the public hearing and a statement that the existence of a majority protest will result in the assessment not being imposed. The Notice herein provided shall be mailed not less than forty-five (45) days before the date of the public hearing. SECTION 10: Additional Information: To obtain additional information about the proposed assessments, the Assessment District, or the proposed Improvements contact: Mary Grace Pawson with the City’s Development Services Department at (707) 588-2234 or mpawson@rpcity.org . The Engineer’s Report and other written material about the Assessment Resolution 2024-063 Page 4 of 4 District may also be reviewed at the Office of the City Clerk during regular business hours. SECTION 11: Annual Assessments: The assessments are proposed to be levied annually. If the proposed assessments are approved and confirmed by the City Council, the assessments will increase in future years by an amount up to the change in the Northern California (San Francisco- Oakland-Hayward) Consumer Price Index-All Urban Consumers (the “CPI”) without a further vote or balloting process. In each subsequent year in which the assessments will be levied, an updated Engineer’s Report, including a proposed budget and assessment rate, shall be prepared. The updated Engineer’s Report shall be considered by the City Council at a noticed public hearing. The City Council’s approval of each updated Engineer’s Report shall serve as the basis for the continuation of the assessments. DULY AND REGULARLY ADOPTED this 23rd day of July 2024. CITY OF ROHNERT PARK ____________________________________ ATTEST: Susan H. Adams, Mayor ______________________________ Sylvia Lopez Cuevas, City Clerk APPROVED AS TO FORM: ______________________________ Michelle M. Kenyon, City Attorney Attachments: Exhibit A ELWARD: _________ RODRIGUEZ: _________SANBORN: _________ GIUDICE: _________ ADAMS: _________ AYES: ( ) NOES: ( ) ABSENT: ( ) ABSTAIN: ( ) ENGINEER’S REPORT CITY OF ROHNERT PARK LANDSCAPE & LIGHTING DISTRICT 2024-01 (WESTSIDE SERVICES) PREPARED BY: CITY OF ROHERT PARK DEVELOPMENT SERVICES DEPARTMENT JULY 9, 2024 Table of Contents Introduction .................................................................................................................................................. 1 Legal Requirements for District Formation................................................................................................... 3 Proposition 218 ........................................................................................................................................ 3 Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal.4th 431 ..................................................................................................................................... 3 Dahms v. Downtown Pomona Property (2009) 174 Cal.App.4th 708 .................................................. 3 Bonander v. Town of Tiburon (2009) 180 Cal.App.4th 103 ........................................................ 4 Beutz v. County of Riverside (2010) 184 Cal.App.4th 1516 .................................................................. 4 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal. App. 4th 416 .... 4 Compliance with Legal Requirements ...................................................................................................... 4 Plans & Specifications ................................................................................................................................... 5 General Overview and Definitions. ........................................................................................................... 6 Park and Streetscape Maintenance .......................................................................................................... 6 Storm Drainage Maintenance and Monitoring ......................................................................................... 6 Lighting Maintenance ...................................................................................................................... 7 Repair and Replacement Reserves ........................................................................................................... 7 District Administration .............................................................................................................................. 7 Fiscal Year 2025-26 Estimate of Cost and Budget ........................................................................................ 8 Method of Assessment Apportionment ....................................................................................................... 8 Discussion of Benefit ................................................................................................................................. 9 Special Benefits ....................................................................................................................................... 10 Proximity to improved parks and landscapes ..................................................................................... 10 Extension of a Property’s Outdoor Areas and Green Spaces for Properties within Close Proximity to the Improvements ......................................................................................................... 10 Improved Safety and Access from Sidewalk and Drainage Facilities .................................................. 10 Improved Nighttime Visibility and Safety from Streetlights ....................................................... 11 Creation of Property for Residential Use that, in Absence of the Assessments, Would Not Have Been Created...................................................................................................................................... 11 Calculation of General and Special Benefits ........................................................................................... 11 General Benefit to the Public at Large .......................................................................................... 12 General Benefit to Property Outside the District ....................................................................... 13 General Benefit to Property within the Assessment District ..................................................... 13 Total General Benefits ......................................................................................................................... 13 Zones of Benefit ...................................................................................................................................... 14 Method of Assessment and Apportionment .......................................................................................... 14 Annual Cost Indexing .............................................................................................................................. 14 Duration of Assessment .......................................................................................................................... 14 Assessment Funds Expended on Benefitting Maintenance Activities .................................................... 15 Oversite, Annual Review and Accountability .......................................................................................... 15 Assessment ................................................................................................................................................. 16 Assessment Diagram ................................................................................................................................... 18 Assessment Roll - FY 2025-26 ..................................................................................................................... 20 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 1 Introduction The Residences at Five Creek is a mixed-use project within the Stadium Area Master Plan area on the west side of Rohnert Park. The project includes a hotel, a park and an apartment complex known as Adega. The apartment complex is being developed in two phases: a 135-unit first phase and a 74-unit second phase. The Residences at Five Creek project was developed under a Development Agreement (the “DA”) between City of Rohnert Park (the “City”) and Stadium RP Development Partners. Stadium Lands RP Development Partners subsequently assigned the DA to Rohnert Park 668 L.P. (the “Developer”), who is developing Adega. The DA, among other things, requires the Developer to pay a “Service Payment” to offset the additional cost of service created by residential development1, consistent with the City’s General Plan polices and goals. For Fiscal Year 2024-25, the Service Payment is capped at $1,002.00/multi-family unit; however, the amount of the Service Payment is subject to annual adjustments on each July 1 based on the San Francisco Bay Area Consumer Price Index. In early 2020 at the Developer’s request, the City formed Community Facilities District 2019-01 – Westside Residential Services (“CFD 2019-01”) to satisfy the DA requirements for Adega Phase I. The Developer has requested the formation of the proposed City of Rohnert Park Landscape and Lighting District 2024-01 (Westside Services) (the “District”) to satisfy the DA requirements for Adega Phase II. This Engineer’s Report is being prepared to support formation of the LLD under the Landscape and Lighting District Act of 1972 (the “Act”) and Articles XIIIC and XIIID of the California State Constitution (“Proposition 218”). As required by the Act, this Report includes plans and specifications, a diagram or map of the District property boundaries, the benefits received by property from the Improvements supported by the District, and the method of allocating the City’s costs of providing the Improvements to lots and parcels within the District (the “Assessments”). As required by Proposition 218, if the City Council approves this Engineer’s Report and the proposed Assessments by resolution (known as a “Resolution of Intention”), an assessment ballot and notice will be mailed to each property owner as identified in the most recent equalized tax roll prepared by the Sonoma County Assessor’s office. The Resolution of Intention preliminarily approving the Engineer’s Report and mailed notice will include the date for a public hearing at which time all assessment ballots must be received to be counted in accordance with Government Code Section 53753. The notice and assessment ballots must be mailed at least 45 days prior to the public hearing. At the appointed time and place, a public hearing will be held to allow public testimony about the proposed Assessments. At this hearing, the Council will hear public testimony and tabulate all assessment ballots turned in before the close of the public comment period of the public hearing. If it is determined that the assessment ballots submitted in opposition to the proposed Assessments do not exceed the assessment ballots submitted in favor of the Assessments (each ballot is weighted by the proportional financial obligation of the property for which the ballot is submitted) the Council may take action to approve the levying of Assessments. Because the formation of the District is planned to occur after July 1, 2024, the Service Payment owed by the Developer to the City under DA Section 6.5 for Fiscal 1 Development Agreement Section 6.5, Public Service Payment. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 2 Year 2024-25 will be “hand billed” to the Developer, and each subsequent years’ Assessments (beginning with Fiscal Year 2025-26) will be submitted to the Sonoma County Auditor/Controller for inclusion on the annual property tax rolls. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 3 Legal Requirements for District Formation Proposition 218 This District is being formed and assessments are being calculated consistent with Proposition 218. Proposition 218 was approved by the voters of California on November 6, 1996, and is now incorporated in Articles XIIIC and XIIID of the California Constitution. Among other requirements, Proposition 218 provides for assessments to be levied on properties to fund the cost of providing “improvements” that specially benefit the assessed properties. Under Proposition 218 and the Act, and the judicial decisions interpreting them, the term “improvements” is broadly defined to generally include acquisition of property; installation of landscaping, lighting, or ornamental structures or facilities, construction that is appurtenant, necessary, or convenient to those installations (such as curbs, gutters, walls, sidewalks, paving, irrigation, drainage, or electrical, as well as parks, restrooms, and community gathering facilities); maintenance; and other related services such as operations and administration. Proposition 218 describes several important requirements, including procedural requirements for property-owner balloting to approve the formation of assessment districts. In essence, as summarized above, the City may only approve an assessment district if the property-owner assessment ballots submitted in opposition to the proposed Assessments do not exceed the property-owner assessment ballots submitted in favor of the Assessments (each ballot is weighted by the proportional financial obligation of the property for which the ballot is submitted). Proposition 218 and the judicial decisions interpreting it also describe important substantive requirements that must be satisfied in identifying and quantifying the amount of the Assessment imposed on each property-owner based on the special benefit received by the assessed property-owner. Some of these key judicial decisions are summarized below. Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority (2008) 44 Cal.4th 431 In Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“SVTA”), the California Supreme Court clarified how public agencies must determine assessed special benefit under Proposition 218. The Court found that: · Benefit assessments are for special, not general, benefit · The services and/or improvements funded by assessments must be clearly defined · Special benefits are directly received by and provide a direct advantage to property in the Assessment District · The assessment levied on each property should be proportional to the special benefits it receives from the Improvements Dahms v. Downtown Pomona Property (2009) 174 Cal.App.4th 708 In Dahms v. Downtown Pomona Property (“Dahms”) the Second District Court of Appeal upheld an assessment that was 100% special benefit (i.e., 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 4 Bonander v. Town of Tiburon (2009) 180 Cal.App.4th 103 In Bonander v. Town of Tiburon (“Bonander”), the First District Court of Appeal overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments primarily on the grounds that the assessments had been apportioned to assessed property based on the costs within sub- areas of the assessment district instead of the overall cost of the improvements and the overall proportional special benefits. Beutz v. County of Riverside (2010) 184 Cal.App.4th 1516 In Steven Beutz v. County of Riverside (“Beutz”) the Fourth District Court of Appeal overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified, and separated from the special benefits. Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal. App. 4th 416 In Golden Hill Neighborhood Association v. City of San Diego (“Golden Hill”), the Fourth District Court of Appeal overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified, and separated from the special benefits. Second, the court found that the City had failed to record the basis for the assessment on its own parcels. Compliance with Legal Requirements This Engineer’s Report is consistent with the requirements of Proposition 218 and the judicial decisions interpreting it because the Improvements to be funded are clearly defined; the benefiting property in the District enjoys close and unique proximity to the improvements, the benefitting property in the District is required as a condition of its development to help support the costs of the improvements and such special benefits provide a direct advantage to property in the District that is not enjoyed by the public at large or other property. This Engineer’s Report is consistent with Beutz, Dahms and Golden Hill because the Improvements will directly benefit property in the District and the general benefits have been explicitly calculated and quantified and excluded from the Assessments. The Engineer’s Report is consistent with Bonander because the Assessments have been apportioned based on the overall cost of the Improvements and Services proportional special benefit to each property, rather than the proportional cost to the District to provide the Improvements to specific properties. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 5 Plans & Specifications The District maintains landscaping, streetscaping, lighting and other improvements that directly benefit the property in the District. The work and improvements to be undertaken by the proposed District are described below and illustrated in Figure 1. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 6 General Overview and Definitions. The installation, maintenance, and servicing of public improvements and facilities, including but not limited to, landscaping, sprinkler systems, park grounds, park facilities, playground equipment, landscape corridors, sidewalks, curbs and gutters, storm drainage systems, public lighting facilities, frontage and retention walls, other landscaping facilities, and related labor, materials, supplies, utilities, equipment, and incidental expenses (collectively “Improvements”). Under the Act, “Installation” means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting, and filling), sod, landscaping, irrigation systems, sidewalks, walkways and drainage, lights, playground equipment, play courts, playing fields, recreational facilities, and public restrooms. Under the Act, “Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of any improvement, including repair, removal or replacement of all or any part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Under the Act, “Servicing” means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Under the Act, “Incidental Expenses” include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (Streets & Highways Code §22526). Park and Streetscape Maintenance Includes maintenance, repair and replacement of a publicly owned park, including a playground, bocce courts, skate feature, turf, decorative landscape, irrigation facilities and water, a decorative gazebo, benches, tables, bike racks, fences, trash and recycling bins, decorative walls, and frontage curb, gutter and sidewalk along the park frontage and the Adega II development, together with all appurtenances and appurtenant work in connection with the foregoing improvements. Storm Drainage Maintenance and Monitoring Includes permitting, operation, maintenance, monitoring and repair of publicly owned drainage and storm water treatment systems that receive tributary flow from the Adega II development, together with all appurtenances and appurtenant work in connection with the foregoing improvements. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 7 Lighting Maintenance Includes the cost of power, maintenance services, electricity and an allowance for replacement of the 2 streetlights along the Adega II development frontage together with all required appurtenances and appurtenant work in connection with foregoing improvements. Repair and Replacement Reserves Dedicated funding, often referred to as “reserves,” will be used to support the cash flow needs of the District (because assessments are collected twice a year) and in the event improvements need to be replaced, outside of the budgeted replacement schedule, due to failure, damage, natural disaster etc. District Administration District administration expenses include all costs associated with the annual administration including the costs of developing budgets, calculating assessments, preparing the annual engineer’s report, holding the annual hearing, and levying the taxes with the County of Sonoma for collection. Annual administration costs may include costs for City staff time as well as outside legal, financial and engineering consultants and any fees charged by the County of Sonoma. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 8 Fiscal Year 2025-26 Estimate of Cost and Budget The Act provides that the total costs for providing the maintenance and servicing of the District Improvements and facilities can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other costs identified with the District proceedings. An estimate of District costs for fiscal year 2025-26 for the maintenance and servicing of the Improvements is provided below. Method of Assessment Apportionment This section of the Engineer's Report explains the benefits to be derived from the Improvements and the methodology used to apportion the total assessment to properties within the District. The District consists of Sonoma County Assessor’s Parcel Number 143-040-139, which contains the Adega II development of 74 multi-family units. The method used for apportioning the assessment is based upon the proportional special benefits derived by the properties in the District over and above Landscape & Lighting District 2024-01 (Westside Residential) Fiscal Year 2025-26 Budget Estimate Description Unit Unit Cost Total Park Maintenance Park & Streetscape Maintenace 3 person crew day*1,680.00$ 30 days/year 50,400.00$ Irrigation Water**LS 3,200.00$ 1 each 3,200.00$ Mulch Replacement (2 years)LS 6,741.95$ 1 each 6,741.95$ Bocce Court Material Replacement (2 years)LS 12,877.06$ 1 each 12,877.06$ Planting Replacement (10 years)LS 7,119.50$ 1 each 7,119.50$ Turf Replacement (10 years)LS 2,739.24$ 1 each 2,739.24$ Playground Fall Material Replacement (5 years)LS 5,281.70$ 1 each 5,281.70$ Playground Equipment Replacement (10 years)LS 1,404.57$ 1 each 1,404.57$ Gazebo Structure Replacement (25 years)LS 2,043.01$ 1 each 2,043.01$ Tables/Benches/ Bike Racks/Trash/Fence Replacement (15 years)LS 6,670.87$ 1 each 6,670.87$ Drinking Fountain Replacement (5 years)LS 4,086.03$ 1 each 4,086.03$ Underground Utilities Replacement (40 years)LS 1,113.39$ 1 each 1,113.39$ Park Pathway and Wall Replacement (50 years)LS 1,690.65$ 1 each 1,690.65$ Frontage Curb/Gutter Replacement (50 years)LF 85.00$ 379.22 LF 6,446.74$ Frontage Sidewalk Replacement (50 years)SF 10.00$ 4000.96 SF 8,001.91$ Subtotal Park Maintenance (rounded to nearest dollar)119,817.00$ Street Frontage Maintenance (Adega II only) Frontage Curb/Gutter Replacement (50 years)LF 85.00$ 838.82 LF 1,425.99$ Frontage Sidewalk Replacement (50 years)SF 10.00$ 4000.96 SF 800.19$ Storm Drainage Maintenace & Monitoring 3 person crew day*1,680.00$ 6 days/year 10,080.00$ Lighting Street Light Replacement each 5,000.00$ 1 5 years 1,000.00$ Street Light Electricity LS 500.00$ 1 each 500.00$ Total Maintenance and Operations Budget 133,623.00$ City Contribution for General Benefits to the Public LS (7,443.00)$ 1 each (7,443.00)$ General Benefit Contribution for Park Maintenance & Reserves LS (77,393.76)$ 1 each (77,394.00)$ Reserves (10% allowance)LS 13,362.00$ 1 each 13,362.00$ Annual Administration (benefit to LLD only)LS 12,000.00$ 1 each 12,000.00$ Budget to Assessment 74,148.00$ *Calculated at $70/hr($34/hr salary + benefits and overhead) **Calculated based on water use patterns of .65 acres of irrigated landscape @ 2.9 af/acre/year @ recycled water rates Quantity City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 9 general benefits conferred on real property or to the public at large. Special benefit and the Assessments are calculated using the following process: · Identification of special benefit factors derived from the Improvements · Calculation and quantification of the general benefits · Determination of the relative special benefit within different areas within the Assessment District · Determination of the relative special benefit per property type · Apportionment of the costs to Assessment and calculation of the Assessment for each individual parcel based upon special benefit; location, property type, property size, property characteristics, improvements on property and other supporting attributes. Discussion of Benefit Assessments must reflect the cost of special benefit to property in the District. This special benefit is received by property over and above any general benefits. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 (the “Act”) 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." Proposition 218 confirms that assessments must be based on the special benefit to property and that the City’s cost to provide the special benefits may exceed the cost of the assessment: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel." The following benefit categories summarize the types of special benefit to property in the District from the installation, maintenance, and servicing of the Improvements to be provided with the assessment proceeds. These categories of special benefit are derived from the statutes passed by the California Legislature and judicial decisions interpreting that legislation and Proposition 218 which describe the types of special benefit received by property from maintenance and Improvements such as those within by the District. These types of special benefit are summarized as follows: · Proximity to improved parks and landscapes · Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements. · Improved safety and access from sidewalk and drainage facilities · Improved nighttime visibility and safety from streetlights · Creation of individual lots for residential use that, in absence of the Assessments, would not have been created. In this case, the SVTA case provides enhanced clarity to the definitions of special benefits to properties from improvements related to proximity and access. SVTA also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. SVTA City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 10 provides specific guidance that park improvements are a direct advantage and special benefit to property that is proximate to a park that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district’s property values). Proximity and improved access strengthen the basis of these assessments. Moreover, the Dahms decision further clarified that certain services and improvements funded by assessments, that are over and above what otherwise would be provided and that other property in general and the public do not share or receive, are 100% special benefit. The assessment-funded services upheld by Dahms included streetscape maintenance and security services. Special Benefits The following special benefits inure to the property in the proposed District. Proximity to improved parks and landscapes Only improvements with close proximity to District are included in the cost estimate. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the Assessments, the Improvements would not be provided and the park and landscapes would be degraded due to insufficient funding for maintenance, upkeep, and repair. Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. Since the parcels in the District enjoy close access to the Improvements, they directly benefit from the areas that are provided through the Assessments. This is a direct advantage and special benefit to property in the District. Extension of a Property’s Outdoor Areas and Green Spaces for Properties within Close Proximity to the Improvements The park and landscaped areas maintained with Assessments provide additional outdoor areas that serve as an effective extension of the land area for proximate properties. The Improvements, therefore, provide an important, valuable, and desirable extension of usable land area for the direct advantage and special benefit of properties with good and close proximity to the Improvements. Improved Safety and Access from Sidewalk and Drainage Facilities The sidewalk and drainage facilities maintained by the Assessments were designed and constructed specifically to provide drainage, access and water quality improvements to serve the property in the District. In the absence of these improvements, there would be no safe pedestrian access to the City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 11 property in the District and there would be no way to remove storm water from the property in the District, increasing the potential for flooding, pooling of stagnant water and vectors. The Improvements provide important, valuable and desirable enhancements to public health and safety directly to the properties in the District, which is a direct advantage and unique benefit. Improved Nighttime Visibility and Safety from Streetlights Well-maintained, effective street lighting provides special benefit to proximate parcels, within the range of the light, because it allows for safer and improved use of the property in the evenings and night. Street lighting also provides special benefit as it increases neighborhood safety and reduces the likelihood of crime on the proximate parcels. Creation of Property for Residential Use that, in Absence of the Assessments, Would Not Have Been Created As discussed above, the Developer has been required to provide a “public service payment” to ensure that improvements that supported the development of its property can be maintained over the life of the development. The Assessments provide a vehicle for ensuring this public service payment can be made. In absence of the Assessments, or a similar mechanism, the property in the District and the Improvements would not have been created. Therefore, the property receives direct advantage and special benefit that is not generally available throughout the City. Calculation of General and Special Benefits Proposition 218 requires an assessing agency to separate the general benefits from the special benefits of a public improvement or service, estimate the quantity of each in relation to the other, and limit the assessment amount to the portion of the improvement or service costs attributable to the special benefits. In the legal decisions known as Golden Hill and Beutz, the California courts have determined that there typically will be some general benefit associated with parks, landscaping and lighting maintenance and improvements because people who don’t reside or own property in an assessment district do receive some, albeit minimal, benefit from the Improvements. The separation and quantification of general and special benefits requires an apportionment of the cost of the service or improvement between the two benefit types. General benefits cannot be funded by assessment revenue. Rather, the funding must come from other sources. This report provides and analysis of how much the general public may reasonably be expected to use or benefit from the improved and maintained areas in relation to the quantity or extent to which property owners within the assessment district use and benefit from the improved and maintained areas. There is no statutory formula for calculating general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. The SVTA decision provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 12 A widely-accepted formula to estimate the general benefit is: Total General Benefit = General Benefit to the public at large + General Benefit to real property outside the district + General Benefit to real property inside the district This formula is used in the discussion below in order to calculate the portion of the costs that should not be borne by the District. General Benefit to the Public at Large The City of Rohnert Park is a planned community with the vast majority of the residential development and parkland located east of Highway 101. The LLD includes a portion of the Residences at Five Creek subdivision, a mixed-use development that located 209 residential units west of Highway 101. The improvements maintained by the District were required as part of the development. The street frontage, lighting and drainage facilities serve only the Adega II development. There would be no need for the improvements to exist and no need to maintain them but for the development project. Because the improvements were solely required because of development and because the larger community experienced no difference in service levels before these improvements were developed, there is no General Benefit attributable to the public at large from the frontage, lighting and drainage improvements. The 0.65-acre park that is maintained by the District is part of the City’s 473.5 acre2 park network. All of the City’s parks, except the one maintained by the LLD, are located east of Highway 101 where they serve the residential developments that are also located east of Highway 101. While many of the City’s parks have regional recreation amenities, including pools, lighted soccer and baseball fields and golf courses, the park maintained by the LLD was intentionally designed to focus on neighborhood serving amenities including a tot lot and a bocce court. While it is possible for residents from the eastern portion of the City to use the park maintained by the LLD, accessing this park would require a vehicle trip across Highway 101. The City acknowledges that the 0.65-acre park benefits both phases of the Adega development (see discussion of General Benefit to Property Outside the District, below). The City also acknowledges that this relatively small, relatively isolated park can also have benefits to the public at large. One way to quantify the benefits to the public at large is to look at the size of the park maintained by the District in the context of the City’s overall park network. This method is quantified below. 0.65 acres/473.5 acres = 0.14% Using this method, the City’s contribution for general benefits to the public at large would be approximately $165/year in current dollars (0.14% of the $119,817 annual park maintenance budget). Another way to quantify the benefits to the public at large is to acknowledge that the City’s DA clearly limits the Developer’s public service payment to $1,002.00/year in current dollars. Under this method 2 City of Rohnert Park, Community Services webpage City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 13 the City’s contribution for benefits to the public at large would provide the difference between the City’s actual costs and the maximum public service contribution and as outlined in the Fiscal Year 2025-26 Budget, above. General Benefit to Property Outside the District The Adega II property, which is the property within the District, receives the special benefits from the Frontage Curb and Gutter, Frontage Sidewalk, Drainage Maintenance & Monitoring and Lighting Improvements because these improvements are located exclusively along the property frontage, are designed to serve only that property and satisfy a required condition of development that allowed the property to be created. But for the creation of the Adega II development, there would be no need for maintenance of the Frontage Curb and Gutter, Frontage Sidewalk, Drainage Maintenance & Monitoring and Lighting Improvements. The benefit of the park and its maintenance is shared with the Adega I Phase 1 development, which is also proximate to the park, receives the benefit of extended green space and was also required to construct and maintain the park. Because Adega I and II are both multi-family developments, the benefit is allocated based on the number of units in each development. Adega I has 135 units and Adega II has 74 units so the benefit to property outside the District is calculate as follows: Number of Units in Adega I/Total Number of Units in Adega I and II or 135/ (135+74) = 64.6% Total General Benefit to Properties Outside of the District =64.6% Using this method, the contribution for general benefits outside the District is approximately $77,400/year in current dollars (64.4% of the $119,817 annual park maintenance budget). General Benefit to Property within the Assessment District The improvements and services funded through the assessments were specifically required, conditioned, designed, located, and constructed to provide additional and improved public resources for property inside the District. While the SVTA decision indicates there may be general benefit “conferred on real property located in the district” when there is property in the district that is used for “regional purposes”, this is not the case for the proposed District. Because improvements and services funded through the assessments were specifically required, conditioned, designed, located, and constructed to provide additional and improved public resources for property inside the District, there is no general benefit associated with property in the District. Total General Benefits The three measures of general benefit are summarized in the table below. The costs associated with these general benefits must come from sources other than the assessment. This contribution offsets any general benefits from the Assessment services. In this case, general benefit contribution offset comes from several sources, including the City of Rohnert Park and Community Facilities District 2019-01 (Westside Services). When these percentages are applied to the total cost of service, the District’s budget for apportionment can be calculated. The budget presented under the title Fiscal Year 2025-26 Estimate of Cost and City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 14 Budgets includes these calculations and the deducts the General Benefit contribution and the City contribution to meet the Development Agreement commitments. The budget also includes an allowance for District Reserves, which is calculated after the General Benefit contribution is removed, and Administration, which is solely attributable to the legal requirements for the District. Total General Benefit Calculation Type of General Benefit Percent of Total Minimum Contribution General Benefits to the Public at Large % Park Maintenance 0.14% $165 Frontage Sidewalk and Curb Maintenance 0% Drainage and Water Quality Maintenance 0% Benefits to Properties outside the District Park Maintenance 64.6% $77,394 Frontage Sidewalk and Curb Maintenance 0% Drainage and Water Quality Maintenance 0% Lighting 0% General Benefits to Properties inside the District 0% Zones of Benefit Since the boundaries of the District were carefully drawn to include the single parcel that receives special benefit from the Improvements, there are no other parcels that could be identified as being in a separate zone of benefit. Method of Assessment and Apportionment As previously discussed, the proposed Assessments will fund maintenance services that clearly confer special benefits to the single parcel in the proposed District. Thus, there are no other parcels to which the assessment may be otherwise apportioned. The District consists entirely of a 74-unit apartment complex and each residential unit receives similar special benefit from the Improvements. Annual Cost Indexing In order to account for inflation, the Method of Assessment explicitly includes that provision that the maximum assessment rate within the District may increase in future years based on the annual increase, if any, in the Northern California (San Francisco-Oakland-Hayward) Consumer Price Index-All Urban Consumers (the “CPI”), from May to May off each year. Duration of Assessment The Assessments, if approved by the property owner, will be continued every year after their formation, so long as the public Improvements need to be maintained and improved, and the City requires funding from the Assessments for these Improvements in the District. As noted previously, the Assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report. In addition, the City Council must hold an annual public hearing to continue the levying the Assessment. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 15 Assessment Funds Expended on Benefitting Maintenance Activities The net available Assessment funds, after incidental, administrative, financing, and other costs shall be expended exclusively for Improvements that provide special benefit to the property within the boundaries of the District as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. Beyond the first fiscal year of the District, authorized expenditures of Assessment funds shall be subsequently established in accordance with the requirements of the Act related to the levy of annual assessments (beginning at Streets and Highways Code Sections 22620) and Proposition 218. Oversite, Annual Review and Accountability The District, including its Assessment budget, Assessment rate, Assessment CPI increase, and Improvements are reviewed annually at a noticed public hearing. The Assessments cannot continue in subsequent years unless the City Council affirmatively approves, at a noticed public hearing, an updated Engineer’s Report with updated budgets, costs and an updated Assessment roll listing all parcels and their Assessments. The updated annual assessments may not exceed the maximum assessment established in this Report, adjusted for inflation by the CPI. At the annual public hearing, members of the public can provide input to the Council prior to the Council’s decision on ordering the Improvements and the Assessments for the next Fiscal Year. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 16 Assessment WHEREAS, the City Council of the City of Rohnert Park, County of Sonoma, State of California, pursuant to the provisions of the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution (collectively “the Act”), adopted its Resolution Initiating Proceedings for the Formation of the City of Rohnert Park Landscaping and Lighting District 2024-01 (Westside Services) for Fiscal Year 2025-26 (the “Assessment District”); WHEREAS, the Resolution Initiating Proceedings directed the undersigned Engineer of Work to prepare and file a report presenting a description of the Improvements, an estimate of the costs of the Improvements, a diagram for the Assessment District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the Assessment District; WHEREAS, the undersigned Engineer of Work prepared this Engineer’s Report for the Assessment District in accordance with the Resolution Initiating Proceedings. NOW, THEREFORE, the undersigned, by virtue of the power vested in me under the Act and the order of the City Council of the City of Rohnert Park, hereby assess the net amount upon the one assessable parcel of land within the District to cover the portion of the estimated cost of the Improvements, and the costs and expenses incidental thereto to be paid by the Assessment District. This assessment is subject to the City Council’s approval following its consideration of evidence at a duly noticed public hearing, considering any protest ballots submitted prior to the conclusion of the public input portion of the public hearing. The estimate of the total costs of the Improvements and related incidental expense to be paid from Assessment revenue from the District, as well as corresponding costs to be paid from sources other than the District, for the fiscal year 2025-26 is listed below. As required by the Act, the Assessment Diagram is hereto attached and made a part hereof showing the exterior boundaries of the District which includes one parcel. The distinctive number of the parcel of land in the Assessment District is its Assessor Parcel Number appearing on the Assessment Roll. Description Budgeted Cost (Contribution) Park and Streetscape Maintenance $ 119,816.63 Storm Drainage Maintenance and Monitoring $ 10,080.00 Lighting $ 1,500.00 Total Operations & Maintenance Budget $ 133,623.00 City Contribution for General Benefits to the Public $ (7,443.00) General Benefit Contribution for Parks & Streetscapes $ (77,394.00) Reserves $ 13,362.00 Annual Administration $ 12,000.00 Total Budget to Assessment $ 74,148.00 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 17 As required by the Act, the Plans and Specifications for the Improvements showing and describing the general nature, location, and extent of the existing and proposed improvements are incorporated in this Engineer’s Report, and are hereto attached and made a part hereof. I do hereby assess and apportion the net amount of the cost and expenses of the Improvements, including the related incidental expenses, upon the single parcel of land within the District, in accordance with the special benefits to be received by that parcel, from the Improvements, and more particularly set forth in the Cost Estimate and Method of Assessment in the Report. The assessment is made upon the parcel of land within the District in proportion to the special benefits to be received by the parcel of land, from the Improvements. The Assessment is subject to an annual increase tied to the Consumer Price Index-All Urban Consumers for Northern California (San Francisco-Oakland-Hayward) as of December of each succeeding year (the “CPI”). The parcel of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Sonoma for the fiscal year 2024-25. For a more particular description of the parcel, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of Calaveras County. Dated: July 9, 2024 By Mary Grace Pawson PE, RCE: C044573 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 18 Assessment Diagram The District Boundary and the parcels to be assessed in City of Rohnert Park Landscaping and Lighting District No 2024-01 (Westside Services) are displayed on the Assessment Diagram, which is on file with the City Clerk of the City of Rohnert Park. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Assessor of the County of Sonoma for Fiscal Year 2024-25, and are incorporated herein by reference, and made a part of this Diagram and this Report. City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 19 City of Rohnert Park Landscape & Lighting District 2024-01 (Westside Residential) Engineer’s Report | July 2024 20 Assessment Roll - FY 2025-26 An Assessment Roll (a listing of all parcels assessed within the Assessment District and the amount of the assessment) is below. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference made part of this Report. These records shall govern for all details concerning the description of the parcel. Assessment Roll City of Rohnert Park Landscape and Lighting District 2024-01 (Westside Services) Assessor’s Parcel Number Site Address Owner’s Name Multi- Family Residential Units Assessment per Unit Total Assessment 143-040-139 591-641 Carlson Ave 74 $1002.00 $74,148.00