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2024/09/10 City Council Resolution 2024-081 RESOLUTION NO. 2024-081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING THE ENGINEER'S REPORT,CONFIRMING THE DIAGRAM AND ASSESSMENT AND ORDERING THE LEVY OF ASSESSMENT FOR THE CITY OF ROHNERT PARK LANDSCAPE AND LIGHTING DISTRICT NO. 2024-01 (WESTSIDE SERVICES) FOR FISCAL YEAR 2025-26 WHEREAS,by Resolution No. 2024-054, approved on July 7, 2024, the City Council ordered the initiation of proceedings for the formation of a landscape and lighting district 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) (the "Act") and Article XIIID of the California Constitution to be known as Landscape and Lighting District No. 2024-01 (Westside Services) (the "Assessment District"), for the purpose of financing the cost of installation, maintenance and servicing, as detailed in the Engineer's Report prepared by Mary Grace Pawson P.E with the City's Development Services Department. WHEREAS, the City Council adopted Resolution No. 2024-62, on July 23, 2024, a Resolution Adopting Proposition 218 Assessment Ballot Procedures. WHEREAS,the City Council adopted Resolution No. 2024-63 on July, 23, 2024, a Resolution Declaring 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. The annual assessment rate for the real property within the proposed Assessment District, the total number of parcels to be assessed, and the total amount of annual assessment revenue is contained within the Engineer's Report. WHEREAS,the City provided a 45-day written mailed notice to each record owner of assessable parcels of real property located within the boundaries of the proposed Assessment District, as set forth on the Boundary Map, of a public hearing which was held at a regular meeting of the City Council on September 10, 2024, at 5:00 p.m. at Rohnert Park City Hall, located at 130 Avram Avenue, Rohnert Park CA, on the issue of whether the Assessment District should be formed and assessments levied and collected as proposed in the Engineer's Report for Fiscal Year 2025-26 and future Fiscal Years. WHEREAS,the form of written mailed public notice of the public hearing contained the following information: (a)the total amount of assessments proposed to be levied within the Assessment District for Fiscal Year 2025-26; (b)the assessment chargeable to each owner's parcel; (c)the duration of the proposed assessment; (d)the reason for the assessment; (e)the basis upon which the amount of the proposed assessment was calculated; (f) the date, time and place of the public hearing as specified in this resolution; and(g) a summary of the voting procedures and the effect of a majority protest. WHEREAS, the form of the written, mailed public notice also included an Assessment ballot by which each property owner could express their support or opposition to the proposed assessment. The ballot indicated that it must be returned before the conclusion of the public hearing on September 10, 2024, in order to be valid and counted, and that all assessment ballots received by the City Clerk(the"Tabulator"),would be tabulated after the conclusion of the public input portion of the public hearing on September 10, 2024, by the City Clerk. WHEREAS,pursuant to the provisions of California Constitution Article XIIID, an opportunity for protest has been afforded, and the assessment ballots mailed to owners of assessable real property within the proposed boundaries of the Assessment District have been received and tabulated, with assessment ballots weighted according to the proportional financial obligation of each affected parcel. 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 The canvass of the assessment ballots submitted by the property owners is complete and certified by the Tabulator, and the votes cast are as follows: Total Number of Valid Ballots Processed: 1 Total Assessment Amount of Valid Ballots: $74,148.00 Total Number of"Yes" Votes Processed: 1 Total Assessment Amount of"Yes" Votes Processed: $74,148.00 Percentage of"Yes" votes, unweighted: 100% Total Percentage of"Yes" Ballots, weighted: 100% Total Number of"No" Votes Processed: 0 Total Assessment Amount of"No" Votes Processed: 0 Percentage of"No" votes, unweighted: 0% Total Percentage of"No" Ballots, weighted: 0% Total Number of"Invalid" Votes Processed 0 Total Assessment Amount of"Invalid" Votes 0 Section 3 One valid assessment ballot was returned and received prior to the close of the public hearing on September 10, 2024. This represents a 100% ballot return rate on the one ballot. As determined by ballots cast, as weighted according to the amount of the assessment for each parcel, 100 % of the property owners cast ballots in support of the Assessment District. Since a majority protest, as defined by Article XIIID of the California Constitution, did not exist, the City Council is authorized to order the levy of assessment as described in the Engineer's Report. Section 4 The City Council hereby confirms and approves the Final Engineer's Report for Landscape and Lighting District No. 2024-01 (Westside Services), together with the diagram of the Assessment District and the proposed assessment roll for Fiscal Year 2025-26 contained therein, in the form presented at the public hearing on the date of this resolution and included as Exhibit A. Resolution 2024-081 Page 2 of 4 Section 5 Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the public hearing, the City Council expressly finds and determines that(a) the assessed parcel of land within the District will be specially benefited by the Improvements (as described in the Engineer's Report) in at least the amount of the Assessment apportioned against this parcel of land; and (b)there is substantial evidence to support, and the weight of the evidence preponderates in favor of, said finding and determination as to special benefit to property with the District from the Improvements to be financed with assessment proceeds. Section 6 The City Council hereby orders the improvements and the formation of the Assessment District and assessments consistent with the Engineer's Report are hereby levied, pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code. Section 7 Assessments for Fiscal Year 2025-26 shall be levied in the amount of $74,148.00 for the single parcel identified as APN 143-040-139, as specified in the Engineer's Report. Section 8 The authorized maximum assessment to be levied in future Fiscal Years shall be increased by an amount up to the change in the Northern California(San Francisco- Oakland-Hayward) Consumer Price Index-All Urban Consumers (the "CPI"), which adjustment shall be based on actual costs, including any reasonable reserves, supported by an Engineer's Report prepared in accordance with Article XIIID of the California Constitution. Section 9 The assessment is in compliance with the provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in the report referred to hereinabove for fiscal year 2025-26. Section 10 The City Council hereby certifies that the assessments to be placed on the 2025-26 property tax bills meet the requirements of Proposition 218 that added Article XIIID to the California Constitution. Section 11 The assessments are levied without regard to property valuation. Section 12 Following the adoption of this resolution, but in no event later than the second Monday in August following such adoption, the Development Services Department shall file a certified copy of the Diagram and Assessment and a certified copy of this resolution with the Auditor/Tax Collector of the County of Sonoma("County Auditor/Tax Collector"). Upon such filing, the County Auditor/Tax Collector shall enter on the County tax roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the Assessment. The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments. Section 13 The revenues representing assessments collected shall be deposited in a separate fund established under a distinctive designation Section 14 The City Clerk shall certify the adoption of this Resolution; and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. Resolution 2024-081 Page 3 of 4 BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute documents needed to implement the actions authorized by this resolution for and on behalf of the City of Rohnert Park. DULY AND REGULARLY ADOPTED this 10th day of September, 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:,. U GIUDICE: Ai i ' ADAMS:rtif AYES: (5 ) NO S: ( 96 ABSENT:J ) ABSTAI : ( „I. Resolution 2024-081 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 SEPTEMBER 1, 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, the City Council preliminarily approved this Engineer’s Report and the proposed Assessments by resolution (known as a “Resolution of Intention”), and an assessment ballot and notice was 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 included the date for a public hearing at which time all assessment ballots were received and counted in accordance with Government Code Section 53753. The notice and assessment ballots were mailed at least 45 days prior to the public hearing. At the appointed time and place, a public hearing was held to allow public testimony about the proposed Assessments. At this hearing, the Council will heard 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. 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 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 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. 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 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