CITY OF ATASCADERO CITY COUNCIL AGENDA
MEETING INFORMATION:
The City Council meeting will be held in the City Council Chambers and in-person attendance will be available at that location.
HOW TO OBSERVE THE MEETING REMOTELY:
To observe remotely, residents can livestream the meeting on Zoom, SLO-SPAN.org, and listen live on KPRL Radio 1230AM and 99.3FM. The video recording of the meeting will be available through the City’s website and on the City’s YouTube Channel. To observe remotely using the Zoom platform please visit:
https://us02web.zoom.us/webinar/register/WN_ZwJ7a031S3KXauEym9ehaA HOW TO SUBMIT PUBLIC COMMENT:
Public comment may be provided in-person.
Written public comments are accepted at [email protected]. Comments should identify the Agenda Item Number in the subject line of the email. Such comments will be forwarded to the City Council and made a part of the administrative record. To ensure distribution to the City Council before consideration of an item, please submit comments not later than 12:00 p.m. the day of the meeting. All correspondence will be distributed to the City Council, posted on the City’s website, and be made part of the official public record of the meeting. Please note, comments will not be read into the record. Please be aware that communications sent to the City Council are public records and are subject to disclosure pursuant to the California Public Records Act and Brown Act unless exempt from disclosure under applicable law. Communications will not be edited for redactions and will be printed/posted as submitted.
AMERICANS WITH DISABILITIES ACT ACCOMMODATIONS:
Any member of the public who needs accommodations should contact the City Clerk’s Office at [email protected] or by calling 805-470-3400 at least 48 hours prior to the meeting or time when services are needed. The City will use their best efforts to provide reasonable accommodations to afford as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests.
DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:
California Government Code section 84308 (“Levine Act”) requires a party to or participant in a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, to disclose any contribution of more than $500 that the party or participant (or their agent) has made to a member of the City Council within the prior 12 months. The City Council Member(s) who receive such a contribution are disqualified and not able to participate in the proceedings and are also required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration. The Levine Act also prohibits, during the proceeding and for 12 months following a final decision, a party to or participant in (or their agent) a proceeding involving a license, permit, or other entitlement, including all contracts other than competitively bid, labor, or personal employment contracts, from making a contribution of more than $500 to any member of the City Council or anyone running for City Council.
City Council agendas and minutes may be viewed on the City's website:
www.atascadero.org/agendas
Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The Minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are made a part of the record or referred to in their statement will be noted in the Minutes and available for review by contacting the City Clerk's office. All documents will be available for public inspection by appointment during City Hall business hours.
CITY OF ATASCADERO
CITY COUNCIL
AGENDA
Tuesday, June 10, 2025, 5:00 p.m.
Tuesday, June 10, 2025, 6:00 p.m.
City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
Pages
A. CLOSED SESSION (5:00 p.m.)
1. CLOSED SESSION - PUBLIC COMMENT
2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
3. CLOSED SESSION - CALL TO ORDER
a. Potential/anticipated threats to public services or facilities - Government Code Sec. 54957(a).
4. CLOSED SESSION - ADJOURNMENT
5. COUNCIL RETURNS
6. CLOSED SESSION REPORT
B. REGULAR SESSION - CALL TO ORDER (6:00 p.m.)
C. PLEDGE OF ALLEGIANCE
Mayor Pro Tem Dariz
D. ROLL CALL
Mayor Bourbeau
Mayor Pro Tem Dariz
Council Member Funk
Council Member Newsom
Council Member Peek
E. CONSENT CALENDAR
(All items on the consent calendar are considered routine and non-controversial by City staff and will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.)
1. City Council Draft - Minutes - May 27, 2025, Regular Meeting 7 Recommendation: Council approve the May 27, 2025, City Council Regular Meeting Minutes [City Clerk]
2. Authorizing Temporary Road Closures for 2025 Hot El Camino Cruise Nite and Colony Days Parade Routes
13 Recommendation: Council:
1. Adopt Draft Resolution A, authorizing temporary road closures and restrictions on August 15, 2025, for the Hot El Camino Cruise Nite.
2. Adopt Draft Resolution B, authorizing temporary road closures and restrictions on October 4, 2025, for the Colony Days Parade.
Fiscal Impact: Cruise Nite incurs no net fiscal impact. [Public Works]
3. Adopting a List of Projects for Fiscal Year 2025-2026 Funded by SB 1:
The Road Repair and Accountability Act of 2017
21 Recommendation: Council adopt Draft Resolution, adopting a list of projects to be funded with Road Maintenance and Rehabilitation Account revenues from SB 1 (The Road Repair and Accountability Act of 2017) for Fiscal Year 2025-2026.
Fiscal Impact: Approval of the Draft Resolution adopting the list of projects for SB 1 funding will allow the City to receive an estimated $834,170 in Fiscal Year 2025-2026 SB 1 funding. [Public Works]
4. Notice of Intent to Annex the Dove Creek Mixed-Use Project into CFD 2005-01
27 Recommendation: Council adopt Draft Resolution, declaring its intention to annex territory into Community Facilities District 2005-1 (Public Services) as Annexation No. 26 and to authorize the levy of special taxes therein (Dove Creek Mixed).
Fiscal Impact: Assessments for this annexation are estimated to be $59,979.38 annually, adjusted each year for inflation. [Community Development]
F. UPDATES FROM THE CITY MANAGER
(The City Manager will give an oral report on any current issues of concern to the City Council.)
G. COMMUNITY FORUM
(This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m. and 5:00 p.m. at (805) 470- 3400, or [email protected].)
H. PUBLIC HEARINGS
1. Proposition 218 Majority Protest Process Relative to Proposed Increase to Wastewater (Sewer) Rates
50 Recommendation: Council:
1. Conduct a public hearing to receive all written and verbal testimony regarding the proposed wastewater (sewer) rates and consider the results of protest proceedings in accordance with Proposition 218; and
2. Adopt one of the following resolutions certifying the protest results:
a. For a non-majority protest – Draft Resolution A, certifying that the number of valid written protests were not received from property owners representing a majority of the parcels subject to the proposed rate increase.
OR
b. For a majority protest – Draft Resolution B, certifying that the number of valid written protests were received from property owners representing a majority of the parcels subject to the proposed rate increase.
3. If no majority protest exists, adopt Draft Resolution C, approving proposed wastewater rates effective July 10, 2025.
Fiscal Impact: If the number of valid written protests were not received from property owners representing a majority of the parcels subject to the proposed rate, the City Council may adopt Draft Resolution A and C.
Doing so will result in an estimated $895,000 in additional revenue from sewer service charges collected in FY25/26. [Public Works]
2. Downtown Parking and Business Improvement Area (DPBIA) Assessment Confirmation of Annual Assessment for Fiscal Year 2025- 2026
66 Recommendation: Council adopt Draft Resolution, confirming the annual assessment for the Downtown Parking and Business Improvement Area (DPBIA) for Fiscal Year 2025-2026.
Fiscal Impact: Adopting the staff recommendation will result in the collection of approximately $14,500 and expenditure of $14,500 in budgeted DPBIA funds. [Community Development]
3. Atascadero Tourism Business Improvement District (ATBID) Confirmation of Annual Assessment (FY 2025-2026)
73 Recommendation: Council adopt Draft Resolution, confirming the annual Business Improvement District assessment on lodging businesses within the Atascadero Tourism Business Improvement District (Fiscal Year 2025-2026).
Fiscal Impact: Annual assessments are expected to be approximately $510,800 and expenditure are budgeted at $503,680 for fiscal year 2025- 2026. [Community Services and Promotions]
4. Apple Valley Assessment Districts 77
Recommendation: Council:
1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto for fiscal year 2025/2026.
2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2025/2026 for Street and Storm Drain Maintenance District No. 01 (Apple Valley).
3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto in fiscal year 2025/2026.
4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2025/2026 for Landscaping and Lighting
District No. 01 (Apple Valley).
Fiscal Impact: Annual assessments for 2025/2026 will total $38,500 for road/drainage system maintenance and $63,000 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Apple Valley. Contributions of $10,750 for half the cost of the park will be made from the City’s General Fund, $6,770 of which will be from contributions made by the developer. [Administrative Services]
5. De Anza Estates Assessment Districts 131
Recommendation: Council:
1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto for fiscal year 2025/2026.
2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2025/2026 for Street and Storm Drain Maintenance District No. 03 (De Anza Estates).
3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto in fiscal year 2025/2026.
4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2025/2026 for Landscaping and Lighting District No. 03 (De Anza Estates).
Fiscal Impact: Annual assessments for 2025/2026 will total $30,562 for road/drainage system maintenance and $17,463 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. The City General Fund will contribute $1,400 for the fiscal year 2025/2026 for half of the maintenance costs of the trails and open space. [Administrative Services]
6. Las Lomas (Woodridge) Assessment Districts 189
Recommendation: Council:
1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 02 (Las Lomas [Woodridge]), and the levy and collection of annual assessments related thereto for Fiscal Year 2025/2026.
2. Adopt Draft Resolution B, ordering the levy and collection of assessments for Fiscal Year 2025/2026 for Street and Storm Drain Maintenance District No. 02 (Las Lomas [Woodridge]).
3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 02 (Las Lomas [Woodridge]), and the levy and collection of annual assessments related thereto in Fiscal Year 2025/2026.
4. Adopt Draft Resolution D, ordering the levy and collection of assessments for Fiscal Year 2025/2026 for Landscaping and Lighting District No. 02 (Las Lomas [Woodridge]).
Fiscal Impact: Annual assessments for 2025/2026 will total $104,287 for road/drainage system maintenance and $78,100 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Las Lomas (Woodridge). The City General Fund will contribute $1,830 for the fiscal year 2025/2026 for 25% of the
maintenance costs of the trails and open space. [Administrative Services] I. MANAGEMENT REPORTS
1. 2025-2027 Operating and Capital Budget 252
Recommendation: Council:
1. Adopt Draft Resolution adopting the budgets for the 2025-2026 and 2026-2027 fiscal years and delegating to the City Manager the authority to implement same.
2. Adopt Draft Resolution amending fiscal year 2024-2025 budget.
3. Adopt Draft Resolution adopting the fiscal year 2025-2026 annual spending limit.
4. Adopt Draft Resolution reaffirming the necessity of Development Impact Fees.
Fiscal Impact: The total revenues for all funds are budgeted at $69,295,860 and $77,667,500 for fiscal years 2025-2026 and 2026-2027, respectively. Total expenditures for all funds are budgeted at $71,831,300 and $78,972,580 for fiscal years 2025-2026 and 2026-2027, respectively. [Administrative Services]
J. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS
(On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. The following represent standing committees.
Informative status reports will be given, as felt necessary):
Mayor Bourbeau
1. City Selection Committee
2. County Mayor’s Round Table
3. Integrated Waste Management Authority (IWMA)
4. Central Coast Community Energy (3CE)
Mayor Pro Tem Dariz
1. Air Pollution Control District
2. California Joint Powers Insurance Authority (CJPIA) Board
3. Community Action Partnership of San Luis Obispo (CAPSLO)
4. Visit SLO CAL Advisory Committee
Council Member Funk
1. Atascadero Basin Ground Water Sustainability Agency (GSA)
2. Design Review Committee
3. Homeless Services Oversight Council
4. REACH SLO Advisory Commission
Council Member Newsom
1. City of Atascadero Finance Committee
2. City / Schools Committee
3. League of California Cities – Council Liaison
4. SLO Council of Governments (SLOCOG)
5. SLO Regional Transit Authority (RTA)
Council Member Peek
1. City of Atascadero Finance Committee
2. City/Schools Committee
3. Design Review Committee
4. SLO County Water Resources Advisory Committee (WRAC) K. INDIVIDUAL DETERMINATION AND / OR ACTION:
(Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.)
1. City Council
2. City Clerk
3. City Treasurer
4. City Attorney
5. City Manager
L. ADJOURNMENT
6/10/25 | Item E1
Atascadero City Council
May 13, 2025
CITY OF ATASCADERO
CITY COUNCIL
DRAFT MINUTES
May 27, 2025, 6:00 p.m.
City Hall Council Chambers, Fourth Floor
6500 Palma Avenue, Atascadero, California
_____________________________________________________________________ A. REGULAR SESSION - CALL TO ORDER 6:00 P.M
B. PLEDGE OF ALLEGIANCE:
Mayor Bourbeau called the meeting to order at 6:00 P.M. and Council Member Peek led the Pledge of Allegiance.
C. ROLL CALL
Present: Council Members Funk, Newsom, Peek, Mayor Pro Tem Dariz, and Mayor Bourbeau
Absent: None
Others Present: None
Staff Present: City Manager James R Lewis, Deputy City Manager/City Clerk Lara Christensen, Administrative Services Director/City Treasurer Jeri Rangel, City Attorney Dave Fleishman, Community Services and Promotions Director Terrie Banish, Community Development Director Phil Dunsmore, Fire Chief Casey Bryson, Police Chief Dan Suttles, Public Works Director Nick DeBar, Deputy City Manager – IT Luke Knight, Battalion Chief Dave Van Son, and Code Enforcement Officer Ayla Tomac
D. CONSENT CALENDAR
1. City Council Draft Minutes - May 13, 2025, Regular Meeting Recommendation: Council approve the May 13, 2025, City Council Regular Meeting minutes. [City Clerk]
2. April 2025 Accounts Payable and Payroll
Fiscal Impact: Total expenditures for all funds is $3,369105.03.
Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for April 2025 [Administrative Services]
6/10/25 | Item E1
Atascadero City Council
May 13, 2025
3. 2025 F-14 Pavement Rehabilitation Project Construction Award Fiscal Impact: Approving staff recommendations will result in the estimated expenditures up to $2,800,000 in Sales Tax Measure F-14 Funds
Recommendation: Council:
1. Award a construction contract for $1,843,967 to Souza Construction for the 2025 F-14 Rehabilitation Project (Project No. C2024R01).
2. Authorize the Director of Administrative Services to allocate $2,550,000 of Sales Tax Measure F-14 funds for the 2025 F-14 Pavement Rehabilitation Project. [Public Works]
4. Annual Military Equipment Report Pursuant Assembly Bill 481 Fiscal Impact: None
Recommendation: Council receive and file the annual Military Equipment Report according to the requirements of Assembly Bill 481; and takes such additional, related, action that may be desirable. [Police Department]
5. Adoption of an Ordinance Forming the Atascadero Industrial Development Authority
Fiscal Impact: There is no significant impact to the City’s general fund associated with the proposed formation of the Industrial Development Authority.
Recommendation: Council adopt, on second reading by title only, an Ordinance of the City Council of the City of Atascadero Forming the Atascadero Industrial Development Authority. [Administrative Services] PUBLIC COMMENT:
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.
MOTION BY: Funk
SECOND BY: Peek
1. Approve Consent Calendar (#D3: Contract No. 2025-012) (#D5:
Ordinance No. 686)
AYES (5): Newsom, Funk, Peek, Dariz and Bourbeau
Passed 5-0
E. UPDATES FROM THE CITY MANAGER: City Manager James R. Lewis gave an update on projects and issues within the City.
6/10/25 | Item E1
Atascadero City Council
May 13, 2025
F. COMMUNITY FORUM
The following persons spoke: Geoff Auslen, Brian Golding G. PUBLIC HEARINGS
1. Adoption of the 2025 Fire Hazard Severity Zone map and discussion regarding the Atascadero Wildland Urban Interface Fire Area Map Fiscal Impact: None
Recommendation: Council:
1. Introduce for first reading, by title only, Draft Ordinance adopting the State Fire Marshal’s 2025 Local Responsibility Area Fire Hazard Severity Zone Map.
2. Review options and provide feedback to staff on the Atascadero Wildland Urban Interface Fire Area Map. [Fire Department] Council Members Newsom, Peek, and Mayor Bourbeau recused themselves from discussion on Recommendation No. 1 due to a conflict of interest, thus creating a lack of a quorum. Through a drawing of straws, Council Member Newsom was brought back by Rule of Necessity in order to meet quorum requirements for an ordinance vote.
Council Member Peek and Mayor Bourbeau left the dais.
Fire Chief Casey Bryson and Battalion Chief Dave Van Son presented Recommendation No. 1. They and Community Development Director Phil Dunsmore answered questions from the Council.
PUBLIC COMMENT:
Mayor Pro Tem Dariz opened the Public Comment period.
The following persons spoke on this item: Geoff Auslen
Mayor Pro Tem Dariz closed the Public Comment period.
MOTION BY: Dariz
SECOND BY: Funk
1. Introduce for first reading, by title only, Draft Ordinance adopting the State Fire Marshal’s 2025 Local Responsibility Area Fire Hazard Severity Zone Map.
AYES (3): Newsom, Funk, and Dariz
NOES (0): None
ABSTAIN (2): Peek, Bourbeau
Passed 3-0
6/10/25 | Item E1
Atascadero City Council
May 13, 2025
Council Member Peek and Mayor Bourbeau returned to the dais for presentation of and discussion on Recommendation No. 2.
Fire Chief Casey Bryson and Battalion Chief Dave Van Son presented Recommendation No. 2. They and Community Development Director Phil Dunsmore answered questions from the Council.
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: Geoff Auslen, Harry Waclaw Mayor Bourbeau closed the Public Comment period.
Staff received feedback from the Council and will bring revised information back to Council at a later date.
Mayor Bourbeau recessed the Meeting at 8:33 P.M.
Mayor Bourbeau reconvened the Meeting with all present at 8:38 P.M.
2. Amendments to Fee Schedule
Fiscal Impact: There will be an increase in operating revenue resulting from the CPI increase, with an offsetting increase in costs to provide the services.
Recommendation: Council adopt Draft Resolution, adopting amended fees and deposits to offset costs incurred in planning services, and a schedule of fees and charges for City services. [Administrative Services] Administrative Services Director Jeri Rangel presented this item. Director Rangel and Community Services and Promotions Director Terrie Banish answered questions from the Council.
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: None
Mayor Bourbeau closed the Public Comment period.
MOTION BY: Newsom
SECOND BY: Dariz
2. Adopt Draft Resolution, adopting amended fees and deposits to offset costs incurred in planning services, and a schedule of fees and charges for City services. (Resolution No. 2025-027) AYES (5): Newsom, Funk, Peek, Dariz and Bourbeau
6/10/25 | Item E1
Atascadero City Council
May 13, 2025
ABSENT (0):
Passed 5-0
3. 4543 Yerba Avenue Nuisance Abatement Hearing
Fiscal Impact: While there is no fiscal impact anticipated in the declaration of a nuisance and an order to abate, the City may incur expenses in an amount to be determined should it later be compelled to abate the nuisance with its own forces or a contractor.
Recommendation: Council adopt Draft Resolution Declaring a Public Nuisance at 4543 Yerba Avenue and Ordering Abatement of the Nuisance.
City Attorney Dave Fleishman presented this item. City Attorney Fleishman and Code Enforcement Officer Ayla Tomac answered questions from the Council.
Mayor Bourbeau opened the Public Comment period.
The following persons spoke on this item: Terri Stinson, Leanne Como, Susan Aggis Mayor Bourbeau closed the Public Comment period.
MOTION BY: Funk
SECOND BY: Newsom
1. Adopt Draft Resolution Declaring a Public Nuisance at 4543 Yerba Avenue and Ordering Abatement of the Nuisance, with amended language in section five allowing for 45 days from date of service of notice to complete abatement (Resolution No. 2025-028) AYES (5): Newsom, Funk, Peek, Dariz and Bourbeau
ABSENT (0):
Passed 5-0
H. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: The following Council Members gave brief update reports on their committees since their last Council meeting
Mayor Bourbeau
1. County Mayor’s Round Table
2. Integrated Waste Management Authority (IWMA)
Mayor Pro Tem Dariz
1. Air Pollution Control District
2. Community Action Partnership of San Luis Obispo (CAPSLO)
6/10/25 | Item E1
Atascadero City Council
May 13, 2025
Council Member Funk
1. Homeless Services Oversight Council
Council Member Newsom
1. City of Atascadero Finance Committee
2. City / Schools Committee
Council Member Peek
1. City of Atascadero Finance Committee
2. City/Schools Committee
I. INDIVIDUAL DETERMINATION AND / OR ACTION:
1. City Council
a. Mayor Bourbeau appointed Planning Commissioners Eric Pennachio and Gregory Heath to the DRC Committee and Council Members Peek and Funk to the Wastewater Working Group
J. ADJOURNMENT 9:32 P.M
MINUTES PREPARED BY:
______________________________________
Alyssa Slater
Deputy City Clerk
APPROVED:
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item E2
Department: Public Works
Date: 6/10/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DEBAR, PUBLIC WORKS DIRECTOR/CITY ENGINEER
PREPARED BY: NICK DEBAR, PUBLIC WORKS DIRECTOR/CITY ENGINEER SUBJECT: Authorizing Temporary Road Closures for 2025 Hot El Camino Cruise Nite and Colony Days Parade Routes
RECOMMENDATIONS:
Council:
1. Adopt Draft Resolution A, authorizing temporary road closures and restrictions on August 15, 2025, for the Hot El Camino Cruise Nite.
2. Adopt Draft Resolution B, authorizing temporary road closures and restrictions on October 18, 2025, for the Colony Days Parade.
DISCUSSION:
Historically, the City participates in two special events each year that require encroachment permits from Caltrans: Hot El Camino Cruise Nite and the Colony Days Parade. Both these events require an encroachment permit from Caltrans due to the closure of Highway 41 at El Camino Real and the closure of the US 101 northbound Highway 41 exit. In order to obtain a Caltrans encroachment permit, the City must provide Caltrans with a traffic control and detour plan for the Highway 41 and US 101 offramp closures. In addition, Caltrans requires a City Council resolution authorizing the temporary road closure of El Camino Real and the other streets affected along the routes.
The routes are currently planned to remain the same as recent years but will have a very different feel and downtown environment with completion of the ECR Project. Staff anticipates a better experience for participants and spectators with the changes from construction, including a better and steady pace for event vehicles through downtown. Spectators will not be allowed in the center median areas (ramblas) due to Police Department concerns with safety of the spectators. These areas will be signed for no parking and no spectator seating.
6/10/25 | Item E2_ | Staff Report
HOT EL CAMINO CRUISE NITE: FRIDAY, AUGUST 15, 2025 (EVENT 6:30 TO 8:30 P.M.) The event begins at 6:30 p.m. but requires temporary road closures in advance of the start time to secure and clear the event route. The following road segments are proposed to be closed from 5:00 p.m. until 9:00 p.m. for the Hot El Camino Cruise Nite event:
• El Camino Real from Curbaril Avenue to Traffic Way
• San Luis Avenue from Curbaril Avenue to Pueblo Avenue • Pueblo Avenue from San Luis Avenue to Sinaloa Avenue
• East Mall from El Camino Real to Palma Avenue
• West Mall from El Camino Real to Palma Avenue
• Entrada Avenue from El Camino Real to Lewis Avenue
• Traffic Way from El Camino Real to Lewis Avenue
• Palma Avenue from Traffic Way to West Mall
The following Saturday evening, “Dancing in the Streets,” a popular event that debuted in 2016, will have street closures that will only impact the downtown area from West Mall to Traffic Way. “Dancing in the Streets” is tentatively planned for Saturday, August 16, 2025 from 5:00 p.m. to 9:00 p.m. A resolution is not needed for this event since Caltrans highway operations are unaffected by the event.
COLONY DAYS PARADE: SATURDAY, OCTOBER 18, 2025 (EVENT 10:00 A.M. TO 1:00 P.M.) The Colony Days Parade route is tentatively planned to begin the Lewis Avenue/West Mall intersection and travel south on Lewis Avenue/Capistrano Avenue, then west on Highway 41, then north on El Camino Real, then east on West Mall ending at the Lewis Avenue near City Hall. The following road segments are proposed to be closed from 5:00 p.m. until 9:00 p.m. for the Hot El Camino Cruise Nite event:
• El Camino Real from Highway 41 to Entrada Avenue
• East Mall from El Camino Real to Lewis Avenue
• West Mall from El Camino Real to Lewis Avenue
• Palma Avenue from Entrada Avenue to West Mall
• Lewis Avenue from Entrada Avenue to Capistrano Avenue • Capistrano Avenue from Lewis Avenue to Highway 41
• Highway 41 from Capistrano Avenue to El Camino Real
Road closures for the Colony Days Parade occurs in two stages. The first stage occurs at 8:00 a.m. and is a “soft” closure that closes a portion of the parade route to allow floats and other participants to set up. The second stage occurs at 9:30 a.m. and is a “hard” closure that prohibits all unauthorized vehicles from driving through the parade route or any closed road.
A detail of each of the road closures is included in the Draft Resolutions (Attachments 1 & 2) and on the proposed route for Hot El Camino Cruise Nite and Colony Days (Attachment 3).
6/10/25 | Item E2_ | Staff Report
FISCAL IMPACT:
Cruise Nite incurs no net fiscal impact. The City cost of conducting the event is approximately $20,000 and is included in the adopted budget. It is anticipated that these costs will be fully recovered through budgeted sponsorships and entry fees.
The Colony Days closure of the parade route is expected to take over 100 hours of budgeted staff time for road closure applications, set-up, and oversight of the road closure. Colony Days is a non-profit event co-sponsored by the City.
REVIEWED BY OTHERS:
This item has been reviewed by the Community Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENTS:
1. Draft Resolution A - Hot El Camino Cruise Nite
2. Draft Resolution B – Colony Days Parade
3. Map - Proposed Route for Hot El Camino Cruise Nite and Colony Days Parade
6/10/25 | Item E2 | Attachment 1
DRAFT RESOLUTION A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, AUTHORIZING TEMPORARY ROAD
CLOSURES AND RESTRICTIONS FOR HOT EL CAMINO CRUISE NITE BE IT RESOLVED, by the City Council of the City of Atascadero that the Hot El Camino Cruise Nite route is hereby established as: El Camino Real from Curbaril Avenue to Entrada Avenue to Palma Avenue to Traffic Way and returning to El Camino Real.
Additionally, San Luis Avenue from Curbaril Avenue to Pueblo Avenue, and Pueblo Avenue from San Luis Avenue to El Camino Real, will be closed for participant registration and check-in activities.
BE IT FURTHER RESOLVED that in order to provide a closed route for the Cruise, the area described above is designated as a “No Parking” and tow-away zone from 5:00 p.m. until 9:00 p.m., on August 15, 2025.
BE IT FURTHER RESOLVED that the City Engineer is authorized to make modifications to the above road restrictions and associated traffic control plan as necessary to address conflicts, improve efficiencies, and for public health, welfare, and safety purposes.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of _______, 2025.
On motion by Council Member ____________________ and seconded by Council Member ____________________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
____________________________________
Charles Bourbeau, Mayor
ATTEST:
____________________________________
Lara K. Christensen, City Clerk
6/10/25 | Item E2 | Attachment 2
DRAFT RESOLUTION B
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, AUTHORIZING TEMPORARY ROAD
CLOSURES AND RESTRICTIONS FOR
COLONY DAYS PARADE ROUTE
BE IT RESOLVED by the City Council of the City of Atascadero that the Colony Days Parade route is hereby established to begin at the intersection of Lewis Avenue/West Mall traveling south on Lewis Avenue/Capistrano Avenue to Highway 41, then west to El Camino Real, then north to West Mall, then east and ending at Lewis Avenue. Additionally, West Mall from Lewis Avenue to Olmeda Avenue and Olmeda Avenue from Traffic Way to West Mall will be closed for Colony Days Parade staging area.
BE IT FURTHER RESOLVED that in order to provide a reserved route for the Parade, staging and associated activities, the following actions are required:
Friday, October 3, 2025 through Saturday, October 4, 2025 – 24 hours Establish “No Parking” and tow-away zone
East Mall – South side only, from El Camino Real to Palma Avenue Saturday, October 4, 2025 – 6:00 a.m. until 5:00 p.m.
Establish road closure and tow-away zone
East Mall, from El Camino Real to Palma Avenue
West Mall, from El Camino Real to Lewis Avenue
Palma Avenue, from East Mall to West Mall
Saturday, October 4, 2025 – 8:00 a.m. until 1:00 p.m. (*Hard closure at 9:30 a.m.) Establish road closure and tow-away zone
Highway 41, from Capistrano Avenue to El Camino Real* El Camino Real, from Highway 41 to Entrada Avenue*
Lewis Avenue, from Entrada Avenue to Capistrano Avenue* Capistrano Avenue, from Lewis Avenue to Highway 41*
West Mall, from Lewis Avenue to Olmeda Avenue
Olmeda Avenue, from Traffic Way to West Mall
BE IT FURTHER RESOLVED that the City Engineer is authorized to make modifications to the above road restrictions and associated traffic control plan as necessary to address conflicts, improve efficiencies, and for public health, welfare, and safety purposes.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of _______ 2025.
6/10/25 | Item E2 | Attachment 2
On motion by Council Member ____________________ and seconded by Council Member ____________________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
____________________________________
Charles Bourbeau, Mayor
ATTEST:
____________________________________
Lara K. Christensen, City Clerk
6/10/25 | Item E3 | Attachment 3
Cruise Nite Route Map
6/10/25 | Item E3 | Attachment 3
Colony Days Parade Route
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item E3
Department: Public Works
Date: 6/10/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, PUBLIC WORKS DIRECTOR/CITY ENGINEER
PREPARED BY: NICK DE BAR, PUBLIC WORKS DIRECTOR/CITY ENGINEER SUBJECT: Adopting a List of Projects for Fiscal Year 2025-2026 Funded by SB 1:
The Road Repair and Accountability Act of 2017
RECOMMENDATION:
Council adopt Draft Resolution, adopting a list of projects to be funded with Road Maintenance and Rehabilitation Account revenues from SB 1 (The Road Repair and Accountability Act of 2017) for Fiscal Year 2025-2026.
REPORT IN BRIEF:
The Road Repair and Accountability Act of 2017 (SB 1) provides funding for local and state jurisdictions to address roadway maintenance and rehabilitation needs, as well as other transportation related projects. This act became law in April 2017 and annual reporting guidelines for local agencies (cities and counties) were finalized in August 2017. Pursuant to these SB 1 annual reporting guidelines, this report summarizes the SB 1 budgeted and estimated revenues FY17/18 through FY25/26 and recommends project allocation for the FY25/26 SB 1 funds.
DISCUSSION:
SB 1 was designed intentionally to provide the most flexibility to local agencies as to how to use these funds, but with a “fix it first” approach to roadway improvements. Annual funds can be used on multiple projects, or a single project can be funded with multiple annual revenue allocations. “Betterment” improvement projects can be funded with SB 1 funds but require local agencies’ roadway systems to have a comprehensive Pavement Condition Index (PCI) of 80 or higher – Atascadero’s last comprehensive PCI was 57 in 2024.
In general, staff recommends directing SB 1 revenues to fund roadway repairs, maintenance, and rehabilitation on arterial and collector functional classification roadways. These roadways receive the heaviest use in town and are driven by most of the public compared to residential functional classification roadways. Furthermore, Measure F-14 funds have been used exclusively on
6/10/25 | Item E3 | Staff Report
collectors and residential (local) roadways. Arterials and collectors are typically more expensive to repair, support commerce and business activities, have enhanced improvements (sidewalks, bike lanes, etc.), and have higher risk for liability if in disrepair. Staff believes committing additional funding to arterials and collectors will allow the City to continue to improve the busiest and most visible roads in Atascadero.
SB 1 guidelines require local agencies to pass a resolution each year that identifies a list of projects for SB 1 funding. The following table summarizes the SB 1 budgeted and estimated revenues FY17/18 through FY25/26.
In accordance with the adopted budget, staff recommends allocating the FY25/26 SB 1 funds toward the following projects:
Santa Lucia Road Pavement Rehabilitation - Segments B and C. This project involves pavement rehabilitation, drainage improvements, culvert replacement, pavement markings, traffic signage, and other miscellaneous and related work for 2.0 miles of Santa Lucia Road between Portola Road and Llano Road.
El Camino Real Pavement Rehabilitation – North (Phase II). This project includes pavement rehabilitation, culvert replacement, pavement markings, traffic signage and other miscellaneous and related work for 0.55 miles of El Camino Real between San Benito Road and Del Rio Road.
The attached Draft Resolution (Attachment 1) will provide the necessary documentation required to be included with the submitted project list to the California Transportation Commission (CTC), which is due on July 1, 2025.
ALTERNATIVES TO THE STAFF RECOMMENDATION:
Council may direct staff to allocate all or part of the estimated FY25/26 SB 1 funds to another budgeted capital project.
Fiscal Year Difference
2017-2018 $ 178,070 $ 181,060 $ 2,990
2018-2019 530,440 571,180 40,740
2019-2020 511,890 526,611 14,721
2020-2021 568,200 557,213 (10,987)
2021-2022 577,400 602,956 25,556
2022-2023 594,140 686,955 92,815
2023-2024 760,910 794,336 33,426
2024-2025 813,410 805,350 * (8,060)
2025-2026 834,170 834,170 * 0
Total $ 5,368,630 $ 5,559,831 $ 191,201
SB 1 Funding Summary
Budgeted Actual /
Estimated*
6/10/25 | Item E3 | Staff Report
FISCAL IMPACT:
Approval of the Draft Resolution adopting the list of projects for SB 1 funding will allow the City to receive an estimated $834,170 in Fiscal Year 2025-2026 SB 1 funding.
REVIEWED BY OTHERS:
This item has been reviewed by the Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT:
Draft Resolution
6/10/25 | Item E3 | Attachment 1
DRAFT RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-2025 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multimodal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City are aware of the projects proposed for funding in the community and which projects have been completed each fiscal year; and
WHEREAS, the City must include a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City budget, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $836,170 of RMRA funding in Fiscal Year 2025-2026 from SB 1; and
WHEREAS, the City has undergone a public process to ensure public input into the community’s transportation priorities and capital improvement plans; and WHEREAS, the City used a Pavement Management System to assist in the development of the SB 1 project list to ensure revenues are being used on the most high-priority and costeffective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate 145 centerline miles of roads, 20 bridges, and add active transportation infrastructure throughout the City this year and hundreds of similar projects in the future; and WHEREAS, the 2024 Pavement Management Program found that the City’s streets and roads are in a “fair” condition and the revenue will help increase the overall quality of the road system over the next decade, with the anticipation of bringing the streets and roads into a “good” condition; and
WHEREAS, without revenue from SB 1, the City’s streets and roads may continue to degrade into a condition that would require higher costs and expenses to maintain and repair; and WHEREAS, if the Legislature and Governor failed to act, city streets and county roads would have continued to deteriorate, resulting in many and varied negative impacts on the community; and
WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment an individual opens the front door to drive to work, bike to
6/10/25 | Item E3 | Attachment 1
school, or walk to the bus station, they are dependent upon a safe, reliable local transportation network; and
WHEREAS, modernizing the local street and road system provides well-paying construction jobs and boosts local economies; and
WHEREAS, the local street and road system is also critical for farm to market needs, interconnectivity, multimodal needs, and commerce; and
WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and WHEREAS, maintaining and preserving local streets and the road system will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduced vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, restoring roads before they fail reduces construction time, which results in less air pollution from heavy equipment and less water pollution from site run-off; and WHEREAS, the overall investment in the local streets, roads, and complete streets infrastructure, with a focus on basic maintenance and safety, using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. That the recitals set forth hereinabove are true, correct and valid.
SECTION 2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2025-26 Road Maintenance and Rehabilitation Account revenues:
Project: Santa Lucia Road Pavement Rehabilitation – Segments B and C Description: Heavy pavement rehabilitation, drainage and culvert improvements, pavement markings, traffic signage, and other miscellaneous and related work for 2.0 miles of Santa Lucia Road.
Location: Portola Road to Llano Road
Estimated Useful Life: 20 years
Estimated Project Schedule (Design & Construction): Spring 2023 – Fall 2025 AND
Project: El Camino Real Pavement Rehabilitation – North (Phase II) Description: Heavy pavement rehabilitation, culvert replacement, pavement markings, traffic signage and other miscellaneous and related work for 0.55 miles of El Camino Real.
Location: San Benito Road to Del Rio Road
Estimated Useful Life: 20 years
6/10/25 | Item E3 | Attachment 1
Estimated Project Schedule (Design & Construction): Spring 2025 – Summer 2026 PASSED AND ADOPTED at a regular meeting of the City Council held on the _____ day of _______, 2025.
On motion by Council Member ______________ and seconded by Council Member ___________, the foregoing resolution is hereby adopted in its entirety by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item E4
Department: Community
Development
Date: 06/10/2025
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: PHIL DUNSMORE, COMMUNITY DEVELOPMENT DIRECTOR
PREPARED BY: KELLY GLEASON, PLANNING MANAGER
ERICK GOMEZ, ASSOCIATE PLANNER
SUBJECT: CFD Annexation: Notice of Intent (Dove Creek Mixed-Use) RECOMMENDATION:
Council adopt Draft Resolution, declaring its intention to annex territory into Community Facilities District 2005-1 (Public Services) as Annexation No. 26 and to authorize the levy of special taxes therein (Dove Creek Mixed).
REPORT IN BRIEF:
At their June 25, 2024 meeting, the City Council conditionally approved a Zone Text Change, Vesting Tentative Parcel Map, and Conditional Use Permit with Modifications to Parking and Hotel Standards for the Dove Creek Mixed-Use project on a 4-0-1 vote. The applicant, Montage Development, Inc., is required to annex into the City’s Community Facilities District (CFD) prior to recordation of their subdivision map and/or the issuance of any building permits for residential units. As permit review is nearing completion for the development, the applicant has petitioned the City to annex into the CFD.
In July 2004, as a key part of the adoption of the City’s Comprehensive Financial Strategy, the Council addressed the need to recover all costs associated with new residential development by directing the formation of a CFD. California law allows the formation of such districts for the purpose of recovering the cost of providing public safety services, including police and fire services, and park services for new developments. CFDs ensure that new homeowners pay special taxes in order to sustain the service capability for emergency and non-emergency services to new growth areas in the City. Without such special taxes in place, most new residential units have a substantial negative impact on the General Fund.
The Citywide CFD was established in 2005 consistent with this policy and a number of projects have been annexed into the CFD as a requirement prior to recordation of a final map and/or issuance of construction permits. With the resolution of intention, the City and the applicants are initiating the process of annexing the Dove Creek Mixed-Use project into the City’s existing CFD.
06/10/2025 | Item E4 | Staff Report
The attached resolution establishes the date for the public hearing to complete the annexation.
The date has been set for July 22, 2025. There are no registered voters in the area being annexed so the election will be a landowner vote. Following completion of the annexation, staff anticipates levying taxes on the parcels on which development has actually begun in the 2025-2026 tax year.
The mixed-use project was conditioned to be fiscally neutral through annexation into the existing Citywide CFD. Annexation into CFD 2005-1 will satisfy the project’s conditions of approval and allow for the annexation vote to occur.
The Dove Creek commercial corner project consists of:
71 residential condominium units.
A 20-room hotel.
14,840 SF of commercial tenant space.
The CFD will be active on the entirety of the site however, based on the Rate and Method of Apportionment that established the methodology for annual levies, annual taxes are expected to be levied on only the residential properties/units as commercial development is generally fiscally neutral or positive. The CFD annual levy is currently $844.78 per residential unit for the 2024- 2025 tax year, and adjusts each year for inflation.
Dove Creek Mixed Use Master Plan of Development
06/10/2025 | Item E4 | Staff Report
ALTERNATIVE:
Council may refer the item back to staff for additional review and analysis.
FISCAL IMPACT:
Assessments for this annexation are estimated to be $59,979.38 annually, adjusted each year for inflation.
REVIEWED BY OTHERS:
This item has been reviewed by the City Attorney, Community Development Director and Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
____________________________________
James R. Lewis, City Manager
ATTACHMENT(S):
1. Draft Resolution
2. Petition to Annex into CFD 2005-1 – No. 26
6/10/25 | Item E4 | Attachment 1
DRAFT RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO
ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT
NO. 2005-1 (PUBLIC SERVICES) AS ANNEXATION NO. 26, AND TO
AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, the CITY COUNCIL of the CITY OF ATASCADERO, CALIFORNIA (the “City Council”), has previously conducted proceedings to establish a community facilities district pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, as amended (the “Act”), Chapter 2.5, Part 1, Division 2, Title 5, commencing at Section 53311, of the Government Code of the State of California, thereof designated as COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) (“CFD No. 2005- 1”); and,
WHEREAS, the City Council has received a petition (including waivers) from the landowner requesting that it annex into CFD No. 2005-1 under the Act, to provide for the costs of services, and the City Council now desires to commence proceedings to annex territory into CFD No. 2005-1 as described herein; and
WHEREAS, under the Act, this City Council, as the legislative body for CFD No. 2005-1, is empowered with the authority to annex territory to CFD No. 2005-1 and now desires to undertake proceedings to annex territory to CFD No.2005-1.
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
SECTION 1. Recitals. The above recitals are true andcorrect.
SECTION2. Public Convenience and Necessity. This City Council hereby determines that the public convenience and necessity requires that territory be annexed into CFD No. 2005-1 in order to pay the costs and expenses for the required and authorized public services.
SECTION 3. Boundaries. A general description of the territory included in the existing CFD No. 2005-1 is hereinafter described as follows: All that property and territory as originally included in the existing CFD No. 2005-1 heretofore recorded as Instrument No. 2005-037685 in the office of the County Recorder for the County of San Luis Obispo on May 9, 2005 in Book 5 at Page 11-13 of Maps of Assessments and Community Facilities Districts, to which map reference is hereby made, and as such map was amended as a result of prior annexations.
6/10/25 | Item E4 | Attachment 1
A description of the boundaries and territory proposed to be annexed is as follows: All that property and territory proposed to be annexed to CFD No. 2005-1, is shown on the Annexation Map for Annexation No. 26 to CFD No. 2005-1, on file in the Office of the City Clerk, the boundaries of which territory are hereby preliminarily approved and to which map reference is hereby made for further particulars. The area proposed to be annexed to CFD No. 2005-1 is as shown on the Annexation Map identified in Exhibit A. The City Clerk is hereby directed to cause to be recorded such Annexation Map, showing the territory to be annexed, in the office of the County Recorder of the County of San Luis Obispo within fifteen days of the date of adoption of this resolution.
SECTION 4. Services. The services which CFD No. 2005-1 is authorized to finance are in addition to those provided in or required for the territory within CFD No. 2005-1 and will not be replacing services already available. A general description of the services to be financed is as follows:
POLICE AND FIRE SERVICES
Police services and fire protection and suppression services (the “Services”) of the City of Atascadero required to sustain the service delivery capability for emergency and non-emergency services to new growth areas of the City of Atascadero, including but not limited to, related facilities, equipment, vehicles, ambulances and paramedics, fire apparatus, services, supplies and personnel; provided, however, that any increases in special taxes for costs related to employee wages and benefits shall be limited as provided in the Rate and Method of Apportionment of the Special Taxes to fund suchServices.
PARK SERVICES
Park services of the City of Atascadero required for the operation and maintenance of public parks.
The City of Atascadero is authorized to finance and direct administrative and incidental annual costs and expenses necessary to provide the maintenance and servicing for public services.
No additional services will be necessary or provided in CFD No. 2005-1 and the services as described for CFD No. 2005-1 will serve the properties within CFD No. 2005-1. It is presently intended that the services will be provided, without preference or priority, to the existing territory in CFD No. 2005-1 and the territory proposed to be annexed to CFD No. 2005-1.
SECTION 5. Special Taxes. It is the intention of this City Council that, except where funds are otherwise available, a special tax sufficient to pay for said services to be provided in CFD No. 2005-1 and Annexation No. 26, secured by recordation of a continuing lien against all non-exempt real property in Annexation No. 26, will be levied annually within the boundaries of Annexation No. 26 from and after the annexation of such property to CFD No. 2005-1.
The special taxes shall be those as authorized through the formation of CFD No. 2005-1,
6/10/25 | Item E4 | Attachment 1
adopted by Ordinance of this legislative body, as amended by the adoption of Resolution 2018- 001 and no changes or modifications are proposed in the special taxes from those as currently set forth and made applicable to CFD No. 2005-1 in accordance with Resolution 2018-001.
For particulars as to the rate and method of apportionment of the proposed special tax (the “RMA”), reference is made to the attached and incorporated Exhibit “B,” which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within Annexation No. 26 to clearly estimate the maximum annual amount that said person will have to pay on said special tax.
The special taxes, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, CFD No. 2005- 1 may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations.
SECTION 6. Public Hearing. Notice is given that on Tuesday, July 22, 2025, at 6:00 p.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this City Council at the City of Atascadero, City Hall Council Chambers, 6500 Palma Ave, Atascadero, California, and the same are hereby appointed and fixed as the time and place when and where this City Council, as legislative body for CFD No. 2005-1, will conduct a public hearing on the annexation of territory to CFD No. 2005-1, and consider and finally determine whether the public interest, convenience and necessity require said annexation of territory to the CFD No. 2005-1 and the levy of said special taxtherein.
SECTION 7. Notice. The City Clerk is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper of general circulation in the area of CFD No. 2005-1, including the area to be annexed to CFD No. 2005-1. The publication of the notice shall be completed at least seven days before the date herein set for said hearing. The City Clerk may also cause a copy of such notice to be mailed to the registered voters and landowners within the territory proposed to annexed, which shall be mailed at least fifteen days before the date of said hearing.
On motion by Council Member and seconded by Council Member , the foregoing Resolution is hereby
adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ADOPTED:
CITY OF ATASCADERO
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
M:\GIS-Assessm en t\Ata sc a d ero\CFD2005-1_An nex26.m xd 045-331-014
WICKSON WAY
EL CAMINO REAL
V
E
R
E
D
A
V
E
R
D
E
LN
SALVIA LN
CUMBRE CT
CORY CT
CASERO CT
SULIVAN CT
TRIGO CT
SHEERIN CT
CASHIN ST
SANTA BARBARA RD
ARBOL DEL ROSAL WAY
BLISS ST
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THIS BO UNDARY MAP CO RRECTLY SHO W S THE BO UNDARIES O F THE CO MMUNITY FACILITIES DISTRICT. FO R DETAILS CO NCERNING
THE LINES AND DIMENSIO NS O F LO TS O R PARCELS REFER
TO THE CO UNTY ASSESSO R’S MAPS FO R FISCAL Y EAR 2024-2025.
COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES)
CITY OF ATASCADERO
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA
²
ANNEXATION
SITE
^_
ATASCADERO
·|}þ41
£¤101
VICINITY MAP
(NOT TO SCALE)
XXX-XXX-XXX
RECO RDED THIS ____ DAY O F ______________, 20___ AT THE HO UR O F ____ O 'CLO CK __M IN BO O K ___ PAGE ___ O F MAPS O F
ASSESSMENT AND CO MMUNITY FACILITIES DISTRICTS IN THE O FFICE
O F THE CO UNTY RECO RDER, IN THE CO UNTY O F SAN LUIS O BISPO , STATE O F CALIFO RNIA.
FEE: ____________ NO .: __________________
ELAINA CANO , CO UNTY CLERK, RECO RDER
BY: _______________________________________
CO UNTY CLERK, SAN LUIS O BISPO CO UNTY
I HEREBY CERTIFY THAT THE W ITHIN MAP SHO W ING PRO PO SED BO UNDARIES O F ANNEX ATIO N NO . 26 TO THE CITY O F ATASCADERO CO MMUNITY FACILITIES DISTRICT NO . 2005-1 (PUBLIC SERVICES),
CITY O F ATASCADERO , CO UNTY O F SAN LUIS O BISPO , STATE
O F CALIFO RNIA, W AS APPRO VED BY THE CITY CO UNCIL O F THE CITY O F
ATASCADERO , AT A REGULAR MEETING THEREO F, HELD O N THE ______ DAY O F ______________, 20______,
BY RESO LUTIO N NO ._______________
______________________________________
CITY CLERK
CITY O F ATASCADERO
FILED IN THE O FFICE O F THE CITY CLERK, CITY O F
ATASCADERO , THIS ____ DAY O F ______________, 20__.
______________________________________
CITY CLERK
CITY O F ATASCADERO
ANNEXATION NO. 26 BOUNDARY MAP
REFERENCE IS HEREBY MADE TO THAT BO UNDARY MAP O F THE CITY O F ATASCADERO CO MMUNITY FACILITIES DISTRICT NO . 2005-1 (PUBLIC SERVICES) RECO RDED W ITH THE SAN LUIS O BISPO CO UNTY RECO RDER'S O FFICE O N MAY 9, 2005, DO CUMENT NO . 2005-037685 IN BO O K 5 PAGES 11-13 O F MAPS O F ASSESSMENT AND CO MMUNITY FACILITIES DISTRICTS.
0 150 300 600 Feet
LEGEND
PARCEL LINE
CFD BOUNDARY
ASSESSOR PARCEL NUMBER
6/10/25 | Item E4 | Attachment 1 | Exhibit A
6/10/25 | Item E4 | Attachment 1| Exhibit B
CITY OF ATASCADERO
COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC
SERVICES) RATE AND METHOD OF APPORTIONMENT
A Special Tax of Community Facilities District No. 2005-1 (Public Services) of the City of Atascadero ("CFD") shall be levied on all Assessor's Parcels in the CFD and collected each Fiscal Year commencing in Fiscal Year 2005-06 in an amount determined by the City through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final subdivision map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State ofCalifornia. "Administrative Expenses" means the actual or estimated costs incurred by the City as administrator of the CFD to determine, levy and collect the Special Taxes, including salaries, benefits and overhead costs of City employees whose duties are directly related to administration of the CFD and the fees of consultants, legal counsel, the costs of collecting installments of the Special Taxes upon the general tax rolls, preparation of required reports; and any other costs required to administer the CFD as determined by the City.
"Affordable Unit(s)" means dwelling units located on one or more Assessor’s Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units will require annual application to the City for verification of their affordable housing status. The City will have the authority to approve and establish policies regarding Affordable Housing Dwelling Units and their status.
Affordable dwelling units shall be classified as Affordable Units by the CFD Administrator in the chronological order in which the building permits for such property are issued. "Annual Escalation Factor" means the greater of, five percent (5%) or the annual percentage change in the Consumer Price Index (CPI) of “All Urban Consumers” for theSan Francisco-Oakland-San Jose Area. "Approved Property" means an Assessor’s Parcel and/or Lot in the District, which has a Final Map recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied, but for which no building permit has been issued prior to the May 1st preceding the Fiscal Year in which the
Special Tax is being levied. The term "Approved Property" shall apply only to Assessors’ Parcels and/or Lots, which have been subdivided for the purpose of residential or commercial development, excluding any Assessor’s Parcel that is designated as a remainder parcel determined by final documents and/or maps available to the CFD Administrator.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number.
6/10/25 | Item E4 | Attachment 1| Exhibit B
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number.
"Base Year" means Fiscal Year ending June 30, 2006.
"CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 2005-1 (Public Services) of the City of Atascadero. "City" means the City ofAtascadero.
"Council" means the City Council of the City of Atascadero, acting as the legislative body of the CFD. "County" means the County of San Luis Obispo, California. "Developed Property" means all Taxable Property, exclusive of Property Owner Association Property, or Public Property, for which a building permit was issued after July 1, 2004 and prior to May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map" means an Assessor’s Parcel Map, a final subdivision map, other parcel map, other final map, other condominium plan, or functionally equivalent map that has been recorded in the Office of the County Recorder.
"Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1. "Lot" means property within a recorded Final Map identified by a lot number for which a building permit has been issued or may potentially be issued.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that can be levied in the CFD in any Fiscal Year on any Assessor’s Parcel. "Multi-Family Residence" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, apartment units, and secondary units as defined in Ordinance No. 454. "Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for a non- residential use and does not contain any residential units as defined under Residential Property or Multi-FamilyProperty.
"Park Services" means the estimated and reasonable costs for maintaining authorized parks within the City.
"Property Owner Association Property" means any property within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor’s Parcels within each Land UseClass. "Public Property" means any property within the boundaries of the CFD that is, at the time of the CFD formation or at the time of an annexation, expected to be used for rights-of-way, parks, schools or any other public purpose and is owned by or irrevocably offered for dedication to the federal government,
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the State, the County, the City or any other public agency. "Public Safety Costs" means the estimated and reasonable costs of providing Public Safety services, including but not limited to (i) the costs of contracting for police and fire services, (ii) related facilities, equipment, vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff if the City directly provides police and fire protection services, and (iv) City overhead costs associated with providing such services within the CFD. The Special Tax provides only partial funding for Public Safety.
"Residential Unit" means any residence in which a person or persons may live, which comprises an independent facility capable of conveyance separate from adjacent residential dwelling units and is not considered to be for commercial or industrial use. This includes Single-Family Residence and MultiFamily Residence. "Single-Family Residence” means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. "Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement, and shall include Special Taxes levied or to be levied under Sections C and D, below.
"Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (i) pay for Public Safety Costs; (ii) pay for Park Services; (iii) pay reasonable Administrative Expenses; (vi) pay any amounts required to establish or replenish any reserve funds; and (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less any surplus of funds available from the previous Fiscal Year’s Special Tax levy. "State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, (ii) Property Owner Association Property, and (iii) property designated by the City or CFD Administrator as Tax-ExemptProperty. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property, including an Assessor’s Parcel that is designated as a remainder parcel and is not identified as potential Public Property by any final document and/or maps available to the CFD Administrator.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be classified as Developed Property, Approved Property, Non-Residential Property, or Undeveloped Property.
Developed Property shall further be classified as Residential Units as specified in Table 1 and shall be subject to Special Taxes pursuant to Sections C and D below.
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C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
TABLE 1
Maximum Special Tax for Developed Property
Community Facilities District No. 2005-1 (Public
Services)
Land Use
Class Description
Maximum Special Tax
Per Unit
1 Residential Units $440 per Unit
2 Affordable Units $0 per Unit
On each July 1 following the Base Year, the Maximum Special Tax Rates shall be increased in accordance with the Annual Escalation Factor.
2. Approved Property
TABLE 2
Maximum Special Tax for Approved Property
Community Facilities District No. 2005-1 (Public Services) Land Use
Class Description
Maximum Special Tax
Per Lot
3 Approved Property $231 per Lot
On each July 1 following the Base Year, the Maximum Special Tax Rate shall be increased in accordance with the Annual Escalation Factor.
3. Non-residential Property
TABLE 3
Maximum Special Tax for Non-Residential Property
Community Facilities District No. 2005-1 (Public
Services)
Land Use
Class Description
Maximum Special Tax
Per Acre
4 Non-Residential
Property $1,848 per Acre
The minimum special tax Non-Residential Property shall be subject to is $50 per parcel. On each July 1 following the Base Year, the Maximum Special Tax Rate for Non-Residential Property shall be increased in accordance with the Annual EscalationFactor.
4. Multiple Land Use Classes
In some instances an Assessor’s Parcel may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax levies that can be imposed on all Land Use Classes located on that Assessor’sParcel.
5. Undeveloped Property
6/10/25 | Item E4 | Attachment 1b
Undeveloped Property will be assigned a Maximum Special Tax Rate of $410 per acre or portion thereof, with a minimum rate of $100 for Undeveloped Property less than or equal to one-fourth (1/4) of an Acre as described in Table 4.
TABLE 4
Maximum Special Tax for Undeveloped Property
Community Facilities District No. 2005-1 (Public
Services)
Land Use
Class Description
Maximum Special Tax
Per Parcel/Acre
5 Undeveloped Property
1/4 Acre $100 per Parcel
6 Undeveloped Property
>1/4 Acre $410 per Acre
On each July 1 following the Base Year, the Maximum Special Tax Rate, for Undeveloped Property, shall be increased in accordance with the Annual Escalation Factor D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2005-06, and for each following Fiscal Year, the CFD Administrator shall calculate the Special Tax Requirement based on the definitions in Section A and levy the Special Tax until the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year on each Assessor’s Parcel of Developed Property Proportionately between Residential Units up to 100% of the applicable Maximum Special Tax. Second, if the Special Tax Requirement has not been satisfied by the first step, then the Special Tax shall be levied each Fiscal Year on each Assessor’s Parcel of Approved Property up to 100% of the applicable Maximum Special Tax for Approved Property. Third, if the first two steps have not satisfied the Special Tax Requirement, then the Special Tax shall be levied each Fiscal Year on each Assessor’s Parcel of Non-Residential Property up to 100% of the applicable Maximum Special Tax for Non-Residential Property. Lastly, if the preceding steps have not satisfied the Special Tax Requirement, then the Special Tax shall be levied each Fiscal Year on each Assessor’s Parcel of Undeveloped Property up to 100% of the applicable Maximum Special Tax for Undeveloped Property.
E. APPEALS
Any taxpayer that believes that the amount of the Special Tax assigned to a Parcel is in error may file a written notice with the CFD Administrator appealing the levy of the Special Tax. This notice is required to be filed with the CFD Administrator during the Fiscal Year the error is believed to have occurred.
The CFD Administrator or designee will then promptly review the appeal and, if necessary, meet with the taxpayer. If the CFD Administrator verifies that the tax should be changed the Special Tax levy shall be corrected and, if applicable in any case, a refund shall be granted.
F. MANNER OF COLLECTION
Special Tax as levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator.
G. TERM OF SPECIAL TAX
The Special Tax shall be levied in perpetuity or until such time as Council terminates the SpecialTax.
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EXHIBIT A
ANNEXATION MAP
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CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H1
Department: Public Works
Date: 06/10/25
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: NICK DE BAR, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: RYAN BETZ, PUBLIC WORKS ANALYST
SUBJECT: Proposition 218 Majority Protest Process Relative to Proposed Increase to Wastewater (Sewer) Rates
RECOMMENDATIONS:
Council:
1. Conduct a public hearing to receive all written and verbal testimony regarding the proposed wastewater (sewer) rates and consider the results of protest proceedings in accordance with Proposition 218; and
2. Adopt one of the following resolutions certifying the protest results:
a. For a non-majority protest – Draft Resolution A, certifying that the number of valid written protests were not received from property owners representing a majority of the parcels subject to the proposed rate increase.
OR
b. For a majority protest – Draft Resolution B, certifying that the number of valid written protests were received from property owners representing a majority of the parcels subject to the proposed rate increase.
3. If no majority protest exists, adopt Draft Resolution C, approving proposed wastewater rates effective July 10, 2025.
REPORT IN BRIEF:
The City is proposing to increase wastewater rates in order to accommodate the costs of providing wastewater services due to a number of key factors including but not limited to rising treatment (chemicals and technical analysis) and energy costs; impacts of regulation and legislation; and past and continued critical upgrades and/or replacement of wastewater facilities and infrastructure. A Wastewater Rate Analysis (Analysis) was completed in 2025 that proposed increases to sewer service charges. Increasing wastewater rates must comply with Proposition 218, which requires certain procedures to be followed with regard to “property-related” fee increases imposed by governmental agencies.
6/10/25 | Item H1 | Staff Report
The City Council reviewed the rate analysis and proposed wastewater rates at their April 22, 2025 meeting and directed staff to administer the Proposition 218 majority protest process and send out notice of the proposed increases to all property owners connected to the municipal sanitary sewer system. The Council also set a Public Hearing for June 10, 2025 to consider proposed wastewater rate increases and receive any protests from parcel owners subject to the rate increases. If a majority of valid protests are received by the deadline established, the City cannot increase the proposed rates in accordance with Proposition 218. If a majority of protests are not received, the City may go ahead with the proposed rate increases.
DISCUSSION:
Background:
The City of Atascadero provides wastewater collection and treatment service for nearly all commercial and industrial properties, as well as a portion of the City’s residential population.
Sewered parcels are generally within the more urban core of Atascadero, with approximately 2,000 acres of the roughly 15,000 acres within the City boundary connected to the sewer system.
Within this area, there are approximately 5,500 parcels, with the remainder of the City’s population served by private on-site septic systems. Wastewater services are considered a community investment that helps ensure public health and safety, economic prosperity, and maximizes land use potential and reasonable development and expansion for businesses, residents and other community buildings. The City of Atascadero assumed ownership and operation of the wastewater collection and treatment system from the Atascadero County Sanitation District in 1982 shortly after incorporation (1979). While there have been upgrades, modifications, and additions to wastewater treatment facilities, the overall process has not changed significantly since 1982 and is considered a stabilization pond treatment system. Such systems are no longer permittable or able to be operated or built as a result of the regulatory environment in California.
Wastewater Funding
Customers connected to the City’s sanitary sewer system are billed a fixed charge for the City’s service to collect and treat the wastewater, which is called a sewer service charge or wastewater service charge. This fixed rate methodology is used since the City is not the water supplier and does not have access to individual customer water consumption data without the customer’s or Atascadero Mutual Water Company’s consent. The fixed charge used by the City is based upon Equivalent Dwelling Units (EDUs), where one EDU is the basis for a single-family residence (SFR) service charge, based upon both an estimated average daily flow of 240 gallons of wastewater and relative wastewater strength provided by the residence. Other connection users are assigned a multiple or fraction of an EDU based upon expected average daily flow and strength of wastewater compared to that of SFR. For example, an apartment or condo is 0.75 EDUs and charged 0.75 times that of a SFR service charge, and a restaurant with less than 40 seats is four EDUs and charged 4 times that of a SFR service charge. The increased charge for a restaurant or certain other commercial uses is not just based on volume but also on the strength of the wastewater which may include cleaners, other chemical products, and stronger waste materials that impact the treatment process. The City currently has approximately 8,300 EDUs in the system. Sewer service charges are collected by placing a levy each year on the property taxes of individual customers through San Luis Obispo County. The City provides data to the County, including the Assessor’s Parcel Number (APN), and the associated sewer service charge being
6/10/25 | Item H1 | Staff Report
levied on the property. The charge is included as a line item on the customer’s property tax statements. Revenue from sewer service charges are paid to the City twice each year.
Council directed staff at its April 22, 2025 meeting to administer the Proposition 218 majority protest process and send out notice of the proposed increases to all property owners connected to the municipal sanitary sewer system. Council also set a Public Hearing for June 10, 2025 for its consideration of the proposed wastewater rate increases. Staff prepared and sent out notices to property owners on April 24, 2025, which meets the 45-day noticing requirement for the Public Hearing. A copy of the notice (Attachment 1) is included as reference.
Wastewater Rate Analysis
The City is dedicated to keeping rates low by maintaining lean staffing levels, absorbing increasing operational and maintenance costs, and using reserves when necessary. However, much like other utilities and services delivered to homes and businesses, the costs involved to collect and treat wastewater have risen and continue to rise. As described in the previous section of this report, the capital needs of the wastewater collection and treatment systems have been identified in detail. In addition to other minor projects, the most significant capital projects identified consist of the WRF Retrofit and Secondary Treatment Improvements totaling over $100 million, and improvements to the collection system. Cost estimates for the combined wastewater collection and treatment system capital needs exceeds $173 million, although the rate analysis excludes all projects except the WRF and the highest priority sewer main project.
Tuckfield & Associates, an independent financial consultant, completed a comprehensive wastewater rate analysis for the City’s wastewater enterprise in April 2025. This analysis reviewed the City’s wastewater services, wastewater enterprise revenue and revenue requirements, and current rate structure over the next five years. The study also analyzed and determined the cost of providing wastewater services and their corresponding impacts to customer’s bills. This analysis identified a number of key factors that result in the proposed rates.
These key factors include, but are not limited to:
Impacts of State regulation and legislation
Rising treatment and energy costs
Past and continued critical upgrades and/or replacement of wastewater facilities and infrastructure
Based upon this analysis, the wastewater rate study recommends annual increases of 18.5% over the next two years to fund the WRF design, operations and maintenance and emergency work in the collection system. Staff recognizes that future rate increases, principally related to the investment for the WRF Retrofit and Secondary Treatment Improvement project, will be necessary and the subject of discussion over the next two years while working on a comprehensive implementation plan. The current monthly sewer service charge of $48.15 per EDU (equivalent to a single-family residence) is proposed to increase by $8.91 for a total monthly rate of $57.06 in FY25/26. The table on the next page shows the current and proposed FY25/26 sewer service charges for the various connection user categories.
6/10/25 | Item H1 | Staff Report
As part of the wastewater rate analysis, the proposed increase for the City of Atascadero was compared to neighboring communities in San Luis Obispo County as of January 2025. The proposed rate is below the median in San Luis Obispo County. While rates would remain below
6/10/25 | Item H1 | Staff Report
the median over the next two years, major, required capital improvements will likely move Atascadero’s rates above the median.
Public Hearing Procedures/Next Steps:
The Council should open the Public Hearing and receive public comment and protests. Protests must be in writing and contain the required information below, as described in the mailed notice and Resolution 2019-033, which established procedures for the submission and tabulation of protests in connection with Proposition 218 rate hearings:
1. A statement it is a protest against the proposed rate that is the subject of the hearing.
2. Name of the property owner or record customer who is submitting the protest.
3. Identification of assessor's parcel number and/or street address of the parcel with respect to which the protest is made.
4. Original, wet signature and legibly printed name of the property owner or record customer who is submitting the protest.
5. Date the protest was signed.
6. A certification, by the named property owner affirming the contents of the protest are true and correct.
At the conclusion of the public hearing, the City Clerk shall tabulate all valid protests received, including those received prior to the conclusion of the public hearing, and shall report the result to the City Council. If the number of protests received is insufficient to constitute a majority protest, then the City Clerk may determine the absence of a majority protest without validating the protests received but may instead deem them all valid without further examination. Further, if the number of protests received is obviously substantially fewer than the number required to constitute a majority protest, then the City Clerk may determine the absence of a majority protest without opening the envelopes which contain the protests.
If the City Clerk determines that additional time is needed to validate and tabulate the protests because the City Clerk has not made the determination described above, then the City Clerk shall so advise the City Council, which may continue the related portion of the meeting to allow the validation and tabulation to be completed on another day or days. If so, then the City Council shall declare the time and place of tabulation, which shall be conducted in a place where interested members of the public may observe the tabulation, and the City Council shall declare the time at which the meeting shall be continued to receive and act on the tabulation report of the City Clerk.
There are 5,611 parcels connected to the sanitary sewer system and subject to the proposed rate increases. Therefore, there needs to be 2,806 or more valid protests for the majority protest to occur, whereby no proposed rate increase may be adopted. After the City Clerk determines the results of the protest process, the City Council will adopt one of two Draft Resolutions setting forth the results of the protest process. If the majority of property owners do not protest, the City Council may go forward with approving the proposed rate increases. In accordance with Title 7, Chapter 10 (7-10.001) of the Municipal Code, the sewer service rates are adopted by Resolution. To avoid confusion, the City Attorney’s office recommends that the new rates are not effective for at least 30 days following adoption, or effective beginning July 10, 2025.
6/10/25 | Item H1 | Staff Report
ALTERNATIVES TO THE STAFF RECOMMENDATION:
1. If a majority protest is not received by property owners, Council has the option to reduce the proposed rate increases but may not increase the rate over that proposed. Staff does not recommend this alternative because the proposed sewer rate increase is necessary to ensure there is sufficient funding to begin the preliminary engineering and cost estimates for the WRF retrofit to meet State requirements.
2. Council could take no action.
FISCAL IMPACT:
If the number of valid written protests were not received from property owners representing a majority of the parcels subject to the proposed rate, the City Council may adopt Draft Resolution A and C. Doing so will result in an estimated $895,000 in additional revenue from sewer service charges collected in FY25/26.
REVIEWED BY OTHERS:
This item has been reviewed by the City Attorney and Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA:
James R. Lewis, City Manager
ATTACHMENTS:
1. Notice Concerning Proposed Wastewater Rate Increases and Public Hearing
2. Draft Resolution A Setting Forth the Results of the Protest Process (Non-Majority Protest)
3. Draft Resolution B Setting Forth the Results of the Protest Process (Majority Protest)
4. Draft Resolution C Approving Proposed Wastewater Rates Effective July 10, 2025
NOTICE CONCERNING PROPOSED WASTEWATER
INCREASES AND PUBLIC HEARING
To Property Owner/Customer:
NOTICE IS HEREBY GIVEN that on Tuesday, June 10, 2025, at 6:00 p.m., a Public Hearing will be held in-person at the City of Atascadero Council Chambers located at 6500 Palma Avenue, Atascadero, California 93422 to consider proposed increases in wastewater rates. If approved by the City Council, the proposed rate increases will be effective for services provided on or after July 10, 2025.
WHY ARE THE RATE CHANGES BEING
CONSIDERED?
The City is dedicated to keeping rates low by maintaining lean staffing levels, absorbing increasing operational and maintenance costs, and using reserves when necessary.
However, much like other utilities and services delivered to homes, the costs involved to collect and treat
wastewater have risen and continue to rise. An
independent analysis determined annual rate increases
would be needed over a two-year period. This year’s rate increase represents the first of that period.
INDEPENDENT ANALYSIS
The City engaged an independent consulting engineer to
assess and analyze the capital needs of the wastewater
collection and treatment systems. The independent
engineer identified numerous capital facility
replacements and upgrades required to continue to
provide a safe and reliable wastewater system. In
addition to other minor projects, the most significant
capital projects identified consist of the Water
Reclamation Facility (WRF) treatment process
improvements totaling in excess of $100 million, and Lift Stations No. 3 and No. 6. The cost estimates for all these needs exceed $173 million, although the rate study
excludes most projects except the WRF improvements
and the highest priority sewer collection project.
Additionally, the City engaged an independent financial consultant to analyze its wastewater services, revenues, and rates and prepare a wastewater rate study. The City commissioned this analysis to determine the cost of
providing wastewater services and their corresponding
impacts to customers’ bills. This analysis identified a number of key factors that result in the proposed rates.
These key factors include, but are not limited to:
• Rising treatment and energy costs
• Impacts of regulation and legislation
• Past and continued critical upgrades and/or
replacement of wastewater facilities and
infrastructure
PROPOSED WASTEWATER REVENUE INCREASES
The City proposes to increase its wastewater service
charges. All wastewater customers would be charged a
fixed monthly wastewater service charge in the same
manner as they are currently charged. Customers of the
wastewater system are charged proportionally to their
wastewater flow and relative strength contributed to the wastewater collection and treatment facilities. Current and proposed wastewater service charges are provided
on the following page.
WASTEWATER MONTHLY BILL IMPACT FOR THE
AVERAGE RESIDENTIAL CUSTOMER
The wastewater bill for a single-family residential customer will increase by $8.91 per month under the proposed rates.
The table below provides the increase in monthly charges for residential customers in 2025-2026.
Revenues derived from the proposed rate changes do
not exceed the revenue requirements needed to provide
the property-related services by the City, nor will the revenues from the rates and charges referenced herein
be used for any purpose other than that for which the
corresponding rates are imposed. The amount of the
proposed rates imposed upon any parcel or person as
an incident of property ownership will not exceed the
proportional cost of the service(s) attributable to such parcel; and no rate will be imposed for a service unless that service is used by, or immediately available to the property or customer in question.
Current Proposed1 Difference
Single Family $ 48.15 $ 57.06 $ 8.91
Apartment, Condo $ 36.11 $ 42.79 $ 6.68
Mobile Home $ 28.89 $ 34.23 $ 5.34
Senior Apartment Unit $ 16.85 $ 19.97 $ 3.12
1 Proposed Rates effective July 10, 2025
Residential Classification
FY 2025-26 Monthly Rate
6/10/25 | Item H1 | Attachment 1
PUBLIC HEARING AND
PROTEST PROCEEDING
The City Council will hear and consider all
written protests and oral comments to the
proposed rate increases at the Public
Hearing. All interested parties are invited to
participate in the public hearing and present
written protests and/or oral comments on
the proposed rate increases referenced
herein. Direction and information for
participating in the meeting will be available
on the City Council Agenda & Minutes
webpage. Agendas are available on the
City’s website:
www.atascadero.org/agendas. Oral
comments made at the public hearing will
not qualify as formal protests of the
proposed rate increases unless
accompanied by a written protest setting
forth the required information (as detailed
below). Upon the conclusion of the Public
Hearing, the City Council will consider
adoption of a resolution authorizing the rate
increases to the City’s wastewater service
charges as described in this Notice. If written
protests against the proposed rate
increases and adjustments to the
wastewater rates as outlined are not
presented by a majority of property owners
of the identified parcels upon which the
wastewater rates are proposed to be
imposed, the City Council will be authorized
to impose the respective rate increases and
adjustment. If adopted, the proposed rate
increases to the wastewater service
charges will be in effect beginning July 10,
2025.
Pursuant to State Law, written protests may be submitted by any record property owner of a parcel, subject to the proposed City rate changes, against any or all of the proposed rate changes described in this Notice. However, only one written protest will be counted per identified parcel. Any written protest must: (1) state that the identified property owner is in opposition to the proposed increases to the wastewater rates; (2) provide the location of the identified parcel [by street address or assessor’s parcel number (APN)]; (3) include the printed name and original, wet signature of the property owner submitting the protest; (4) date the protest was signed; and (5) certification by the named property owner that the contents of the protest are true and correct. Written protests may be submitted by mail or in person to the City Clerk at 6500 Palma Avenue, Atascadero, CA 93422, or at the Public Hearing on June 10, 2025 (date, time, and location specified on the front of this Notice), provided they are received prior to the close of the Public Hearing, which will occur when the public testimony on the proposed increases and adjustments is concluded. Due to the inability to verify the authenticity of each individual protest, protests received by telephone, electronic mail (e-mail), or via social media sites, including, but not limited to, Facebook or X shall NOT be accepted.
Please identify on the front of the envelope for any written protest, whether mailed or submitted in person to the City Clerk, the following: “Attn: Protest Wastewater Rate Increases”. Written protest in marked envelopes may be submitted in person by dropping them off in the locked box in the foyer at City Hall. For more information or questions about the proposed wastewater rate increases, written protest submittal procedures, or public testimony options at the Public Hearing, you may contact the Department of Public Works at (805) 470-3456 or visit the City’s website at www.atascadero.org/Prop218. Additional information and protest procedures will be available on the City’s website not later than April 22nd, 2025.
ESTA CARTA ESTÁ DISPONIBLE EN ESPAÑOL, LLAME A CINDY CHAVEZ (805) 470-3484 6/10/25 | Item H1 | Attachment 1
6/10/25 | Item H1 | Attachment 2
DRAFT RESOLUTION A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, SETTING FORTH THE RESULTS OF
PROTESTS IN CONNECTION WITH WASTEWATER (SEWER) RATE
HEARING CONDUCTED PURSUANT TO THE REQUIREMENTS OF
PROPOSITION 218
WHEREAS, Article XIIID, Section 6 of the California Constitution requires the City Council to consider written protests to certain proposed increases to rates (fees or charges) for utility services; and
WHEREAS, the City Council adopted Resolution No. 2019-033 establishing procedures for the submission and tabulation of protests in connection with rate hearings conducted pursuant to the requirements set forth in Article XIIID of the California Constitution to help ensure that the rights of those persons that are authorized to protest service charges are preserved; and WHEREAS, a Wastewater Rate Analysis was prepared for the City of Atascadero’s Wastewater Enterprise and recommends increases to wastewater rates to meet the on-going operational needs of the enterprise and needed funding for capital infrastructure requirements; and WHEREAS, the City Council reviewed the Wastewater Rate Analysis at their regular meeting on April 22, 2025 and directed staff to administer the Proposition 218 majority protest process and send out notice of the proposed increases to all parcel owners subject to the increase and set a Public Hearing for June 10, 2025 to consider proposed wastewater rate increases; and WHEREAS, notices of the proposed wastewater rates and Public Hearing were mailed to all parcel owners subject to the proposed increases at least 45 days prior to the Public Hearing; and WHEREAS, the City Council conducted a Public Hearing for proposed wastewater rates on June 10, 2025 to receive public comment and consider the results of protest proceedings in accordance with Proposition 218; and
WHEREAS, the City Clerk has tabulated all valid protests received by the conclusion of the June 10, 2025 Public Hearing and has determined that the number of valid protests received is insufficient to constitute a majority protest (50% plus 1).
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1: Recitals. The above recitals are true and correct and are hereby incorporated by reference.
SECTION 2: Protest Votes. The number of unique parcels eligible to file a protest was 5,611. The number of valid protests required to prevent adoption of the proposed rate increases is 2,806. The number of valid protests received by the City at the end of the June 10, 2025 Public Hearing was __________________.
6/10/25 | Item H1 | Attachment 2
SECTION 3: Results of Protests. The tabulation by the City Clerk of the number of valid protests received on proposed wastewater rates is accepted and sets forth that the protest results conclude that there is an insufficient number of valid protests received to constitute a majority protest to the proposed wastewater rates, whereby allowing the consideration to adopt proposed wastewater rates.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 10th day of June, 2025.
On motion by __________ and seconded by ___________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
6/10/25 | Item H1 | Attachment 3
DRAFT RESOLUTION B
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, SETTING FORTH THE RESULTS OF
PROTESTS IN CONNECTION WITH WASTEWATER (SEWER) RATE
HEARING CONDUCTED PURSUANT TO THE REQUIREMENTS OF
PROPOSITION 218
WHEREAS, Article XIIID, Section 6 of the California Constitution requires the City Council to consider written protests to certain proposed increases to rates (fees or charges) for utility services; and
WHEREAS, the City Council adopted Resolution No. 2019-033 establishing procedures for the submission and tabulation of protests in connection with rate hearings conducted pursuant to the requirements set forth in Article XIIID of the California Constitution to help ensure that the rights of those persons that are authorized to protest service charges are preserved; and WHEREAS, a Wastewater Rate Analysis was prepared for the City of Atascadero’s Wastewater Enterprise and recommends increases to wastewater rates to meet the on-going operational needs of the enterprise and needed funding for capital infrastructure requirements; and WHEREAS, the City Council reviewed the Wastewater Rate Analysis at their regular meeting on April 22, 2025 and directed staff to administer the Proposition 218 majority protest process and send out notice of the proposed increases to all parcel owners subject to the increase and set a Public Hearing for June 10, 2025 to consider proposed wastewater rate increases; and WHEREAS, notices of the proposed wastewater rates and Public Hearing were mailed to all parcel owners subject to the proposed increases at least 45 days prior to the Public Hearing; and WHEREAS, the City Council conducted a Public Hearing for proposed wastewater rates on June 10, 2025 to receive public comment and consider the results of protest proceedings in accordance with Proposition 218; and
WHEREAS, the City Clerk has tabulated all valid protests received by the conclusion of the June 10, 2025 Public Hearing and has determined that the number of valid protests received is sufficient to constitute a majority protest (50% plus 1).
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1: Recitals. The above recitals are true and correct and are hereby incorporated by reference.
SECTION 2: Protest Votes. The number of unique parcels eligible to file a protest was 5,611. The number of valid protests required to prevent adoption of the proposed rate increases is 2,806. The number of valid protests received by the City at the end of the June 10, 2025 Public Hearing was _______.
6/10/25 | Item H1 | Attachment 3
SECTION 3: Results of Protests. The tabulation by the City Clerk of the number of valid protests received on proposed wastewater rates is accepted and sets forth that the protest results conclude that there is a sufficient number of valid protests received to constitute a majority protest to the proposed wastewater rates, whereby disallowing the consideration to adopt proposed wastewater rates.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 10th day of June, 2025.
On motion by __________ and seconded by ___________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
6/10/25 | Item H1 | Attachment 4
DRAFT RESOLUTION C
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, ESTABLISHING WASTEWATER RATES
(SEWER SERVICE CHARGES) FOR THE WASTEWATER DIVISION
WHEREAS, the City of Atascadero owns and operates a municipal wastewater collection and treatment system for the safe and reliable disposal of wastewater in accordance with applicable regulations; and
WHEREAS, the City of Atascadero levies and imposes a monthly sewer service charge, as provided by resolution of the City Council, upon the property owners of any parcels or premises within the City that has any sewer connection or discharges wastewater to the municipal wastewater collection and treatment system; and
WHEREAS, a Wastewater Rate Analysis was prepared by Tuckfield & Associates for the City of Atascadero’s Wastewater Division that recommends increases to wastewater rates (sewer service charges) to meet the on-going operational needs of the enterprise and needed funding for capital infrastructure requirements; and
WHEREAS, the City Council reviewed the Wastewater Rate Analysis at their regular meeting on April 22, 2025 and set a Public Hearing for June 10, 2025 to consider proposed wastewater rate increases; and
WHEREAS, the City Council conducted a Public Hearing for proposed wastewater rates on June 10, 2025 to receive public comment and consider the results of protest proceedings in accordance with Proposition 218; and
WHEREAS, Article XIIID, Section 6 of the California Constitution requires the City Council to consider written protests to certain proposed increases to rates (fees or charges) for utility services; and
WHEREAS, the City Clerk tabulated all valid protests received by the conclusion of the June 10, 2025 Public Hearing and has determined that the number of valid protests received is insufficient to constitute a majority protest (50% plus 1); and WHEREAS, the City Council accepted the City Clerk’s tabulation by Resolution No. 2025-___ at the June 10, 2025 Public Hearing which sets forth that the protest results conclude that there was an insufficient number of valid protests received to constitute a majority protest to the proposed wastewater rates, whereby allowing the consideration to adopt proposed wastewater rates.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1: Recitals. The above recitals are true and correct and are hereby incorporated by reference.
6/10/25 | Item H1 | Attachment 4
SECTION 2: Sewer Service Charges Established. The Proposed Sewer Service Charges as set forth in Exhibit A, attached hereto and incorporated herein by this reference, are hereby approved and shall become effective thirty (30) days from adoption on July 10, 2025.
SECTION 3: Previous resolutions establishing Sewer Service Charges are superseded upon the effective date of the Sewer Service Charges as established in Section 2 above, and are hereby rescinded and rendered moot.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 10th day of June, 2025.
On motion by __________ and seconded by ___________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
6/10/25 | Item H1 | Attachment 4 | Exhibit A
EXHIBIT A
Current Proposed1
Residential Fixed Charges
Single Family 1.00 Dwelling Unit $ 48.15 $ 57.06
Apartment, Condo 0.75 Dwelling Unit $ 36.11 $ 42.79
Mobile Home 0.60 Spaces $ 28.89 $ 34.23
Senior Apartment Unit 0.35 Dwelling Unit $ 16.85 $ 19.97 Non-Residential Fixed Charges
Financial Institutions 2.00 Unit $ 96.30 $ 114.12
Bars 1.50 Unit $ 72.23 $ 85.59
Carwash 7.50 Unit $ 361.13 $ 427.94
Churches/Meeting Halls
< 150 seats 1.33 Seats $ 64.04 $ 75.89
150 to 250 seats 2.66 Seats $ 128.08 $ 151.77
> 250 seats 3.00 Seats $ 144.45 $ 171.17
Commercial Unit 1.00 Unit $ 48.15 $ 57.06
Funeral Home 9.00 Unit $ 433.35 $ 513.52
Gas Station 2.00 Unit $ 96.30 $ 114.12
Grocery Store > 10,000 sq. ft. 8.00 1,000 sq. ft. $ 385.20 $ 456.46 Gymnasium 10.00 Unit $ 481.50 $ 570.58
Laundry 9.00 Unit $ 433.35 $ 513.52
Motel (per room) 0.33 Room $ 15.89 $ 18.83
Office Unit 1.00 Unit $ 48.15 $ 57.06
Rest Home (per bed) 0.35 Bed $ 16.85 $ 19.97
Restaurants
< 40 seats 4.00 Seats $ 192.60 $ 228.23
40 to 60 seats 6.00 Seats $ 288.90 $ 342.35
61 to 100 seats 8.00 Seats $ 385.20 $ 456.46
> 100 seats 10.00 Seats $ 481.50 $ 570.58
Schools (per student enrolled on March. 1) 0.05 Student $ 2.41 $ 2.86 Theater 4.00 Unit $ 192.60 $ 228.23
Veterinarians 3.00 Unit $ 144.45 $ 171.17
Unlisted Uses21.00 Unit $ 48.15 $ 57.06
1 Proposed Rates effective July 10, 2025
CURRENT AND PROPOSED MONTHLY SEWER SERVICE CHARGES
Classification Description
EDU3
Multiple
Unit of
Measure
Monthly Rate
3 EDU = Equivalent Dwelling Unit is the average daily flow and strength of wastewater discharge 2 Unlisted uses are determined by use of fixture units from the California Plumbing Code or as by means deemed appropriate by the City Engineer.
from single family residence (240 gallons per day with BOD5=250 ml/L and SS=250 ml/L).
1 From: B. Lynch < >
Sent: Thursday, May 29, 2025 5:29 AM
To: City Council <[email protected]>
Subject: 6-10-25 Wastewater Rate Support
Please support the proposed increases to rates to fund necessary improvements to the wastewater systems.
You need only look back to the original versus final costs for the Los Osos sewer system to see that delay simply increases the cost and in the case of an existing system, such as ours, will increase interim maintenance costs on top of that. Some unfortunate future Council will then have to face the public with the bad news.
Please be mindful that you represent all of us and not just the small portion of complainers. I support your efforts to do the right thing for the future and not just the easy thing for the present.
Thank you for your willingness to serve the community. I know it isn't always appreciated.
Sincerely, B. Lynch
ATTENTION:
This email originated from outside the City's network. Use caution when opening links and attachments. 6/10/25 | Item H1 | Public Comment
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H2
Department: Community
Development
Date: 6/10/25
Placement: Consent
TO: JAMES R. LEWIS, CITY MANAGER
FROM: LORELI CAPPEL, DEPUTY DIRECTOR ECONOMIC & COMMUNITY
DEVELOPMENT
PREPARED BY: LORELI CAPPEL, DEPUTY DIRECTOR OF ECONOMIC & COMMUNITY
DEVELOPMENT
SUBJECT: Downtown Parking and Business Improvement Area (DPBIA) Assessment Confirmation of Annual Assessment for Fiscal Year 2025-2026 RECOMMENDATION:
Council adopt Draft Resolution, confirming the annual assessment for the Downtown Parking and Business Improvement Area (DPBIA) for Fiscal Year 2025-2026.
DISCUSSION:
The City of Atascadero established a Downtown Parking and Business Improvement Area in 1986 (Chapter 11 of the Atascadero Municipal Code) for the purpose of acquisition, construction or maintenance of parking facilities, decoration of public places, promotion of public eeents, and general promotion of business actieities in the downtown area. The formation and operation of a Parking and Business Improvement Area is governed by the California Streets and Highways Code (Section 36500 et. Seq.). The Code requires the City to levy and collect the assessments, the City Council to adopt an annual Resolution of Intention declaring the City’s intent to levy an annual Downtown Parking and Business Improvement Area (DPBIA) assessment and hold a public hearing confirming the assessment. The City Council adopted a draft Resolution of Intention on May 13, 2025, and set a public hearing for June 10, 2025 to receive public comment.
The
Chamber of Commerce serves as the advisory body and the sub-contractor to the City regarding the DPBIA. An informal committee of downtown business owners advises the Chamber of Commerce on expenditures and assists in the creation of the annual DPBIA budget. As part of the contract, the Chamber provides an annual accounting of expenditures for the DPBIA funds.
6/10/25 | Item H2 | Staff Report
The Chamber has submitted a report, which was provided to the Council at the May 13, 2025, meeting and is Exhibit A to the proposed Resolution confirming the assessment. The DPBIA assessments collected by the City are estimated at approximately $14,500 annually. The recommended action would confirm the assessment and collection of these funds for downtown revitalization activities for 2025/2026. The report does not propose any changes to the boundaries of the DPBIA or of the assessment. 2024-2025
ESTIMATED
2025-2026
REQUESTED
REVENUES
BIA Assessments- Received from the City $ 14,620 $ 14,500 Revenue from Events - -
Total Revenues 14,620 14,500
EXPENSES
Events (668) (4,000)
Beautification/Miscellaneous (31,000)
Bank Service Charge (18)
Marketing (5,265) (5,000)
Administration (1,462) (1,450)
Total Expenses (7,413) (41,450)
Net Income 7,207 (26,950)
BEGINNING AVAILABLE BALANCE 36,354 43,561
ENDING AVAILABLE BALANCE $ 43,561 $ 16,611
The City will collect funds for the DPBIA along with business license fees in December and January.
FISCAL IMPACT:
Adopting the staff recommendation will result in the collection of approximately $14,500 and expenditure of $14,500 in budgeted DPBIA funds.
ALTERNATIVES:
1. The City Council may choose not to adopt the Resolution, confirming the levy of the assessment as recommended, and discontinue the levy.
2. The City Council may grant Downtown Parking and Business Improvement Area assessment funds in an amount lower than requested.
REVIEWED BY OTHERS:
This item was reviewed by the Administrative Services Director and the Deputy City Manager.
6/10/25 | Item H2 | Staff Report
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENTS:
1. Draft Resolution
6/10/25 | Item H2 | Attachment 1
DRAFT RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, CONFIRMING DOWNTOWN PARKING
AND BUSINESS IMPROVEMENT AREA ASSESSMENT FOR FISCAL
YEAR 2025/2026
WHEREAS, the City of Atascadero established a Downtown Parking and Business Improvement Area (DBPIA) consistent with Section 36500 et seq. of the Streets and Highways Code of the State of California; and
WHEREAS, Section 36533 of the Streets and Highway Code of the State of California requires a report to be filed with the City prior to the levy and collection of the assessment; and WHEREAS, the City Council determined in 2010 to set the assessment at $0.00 to provide a stimulus to downtown businesses in this time of unprecedented economic downturn, eliminating the need for a report in accordance with Section 36533 of the Streets and Highway Code of the State of California; and
WHEREAS, the City Council reinstituted the full levy of the assessment for the DPBIA in 2018, at the request of downtown businesses; and
WHEREAS, the City has entered into an agreement with the Chamber of Commerce, which serves as the advisory body and the sub-contractor to the City regarding the DPBIA; and WHEREAS, an informal committee of downtown business owners advises the Chamber of Commerce on expenditures and assists in the creation of the annual budget; and WHEREAS, the Atascadero Chamber of Commerce filed a report with the City in accordance with Section 36533 of the Streets and Highway Code of the State of California , attached hereto and incorporated herein by this reference; and WHEREAS, the City Council, having received the report, adopted Resolution No. 2025- 007 declaring intent to levy annual Downtown Parking and Business Improvement Area assessment pursuant to Section 36534 of said code; and
WHEREAS, the City Council did fix a time and place for a public hearing on the levy of the proposed assessment for fiscal year 2025-2026; and
WHEREAS, on June 10, 2025, the City Council conducted a public hearing at the date and time for such purpose; and
WHEREAS, the City Council did not receive the required number of protests for the levy of such assessment.
6/10/25 | Item H2 | Attachment 1
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. The City Council of the City of Atascadero does hereby confirm approval of the Section 36533 Report as originally filed, and confirmation of approval of such report constitutes the levy of an assessment for fiscal year 2025-2026, pursuant to the Streets and Highways Code of the State of California.
SECTION 2. The Atascadero Chamber of Commerce is hereby designated to receive and manage, with direction from the downtown businesses, Downtown Parking and Business Improvement Area assessment funds for fiscal year 2025-2026.
SECTION 3. The City Council directs staff to make appropriations in the City’s budget in accordance with such a report.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 10th day of June 2024.
On motion by Council Member _______________________, and seconded by Council Member _______________________, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
CITY OF ATASCADERO:
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
6/10/25 | Item H2| Attachment 1| Exhibit A
Exhibit A
Atascadero Chamber of Commerce
Downtown Parking and Business Improvement Area
Annual Report for Fiscal Year 2025-2026
The California Streets and Highways Code Section 36533 requires the preparation of a report for each fiscal year for which assessments are to be levied and collected to pay the costs of improvements and activities of the Improvement Area. The report may propose changes, including, but not limited to the boundaries of the Parking and Business Improvement Area or any benefit zones within the area, the basis and method of levying the assessments, and any changes in the classification of businesses.
No boundary changes are proposed for Fiscal Year 2025-2026. The boundaries are more specifically described as follows:
From the south corner of Morro Road at the Highway 101 over-crossing then in the generally northwest direction immediately adjacent to Highway 101, to a point at the intersection of El Camino Real and Rosario Avenue, then easterly along Rosario Avenue, to a point at the intersection of Rosario and Palma Avenue, then easterly along Palma Avenue to the rear lot line of parcels on the east side of Traffic Way, then north along said rear lot lines to include Lot 24 of Block LA, of Atascadero, then northerly along the center line of Traffic Way, to a point, then easterly to include the presently existing National Guard Armory Property. Then to a point easterly to the intersection of West Mall and Santa Ysabel Avenue at the West Mall bridge, then southerly along Santa Ysabel Avenue to a point at the intersection of the southerly leg of Hospital Drive and Santa Ysabel Avenue, then easterly from that point to the extension of proposed Highway 41, then southwesterly to the Morro Road/Highway 101 overcrossing, point of beginning.
Since 2000, the City, Community Redevelopment Agency, Chamber of Commerce, other organizations and the community have worked to strengthen the downtown business community, and implement the downtown revitalization strategy. In 2009, as the economic downturn was affecting businesses, the City Council made the decision to levy a $0 assessment on the businesses in the District. The State of California dissolved all redevelopment agencies in 2011, and the City, Chamber of Commerce, and other organizations have worked in collaboration to continue the efforts of the Community Redevelopment Agency to provide better services to and strengthen the businesses in the downtown.
In 2017, an informal committee of downtown business owners formed to promote economic vitality and encourage business growth in the downtown. This committee will advise the Chamber of Commerce on expenditures and will assist in the creation of the annual budget for the Downtown Parking and Business Improvement Area (DPBIA). The Atascadero Chamber of Commerce will serve as the advisory body and the sub-contractor to the City regarding the Downtown Parking and Business Improvement
6/10/25 | Item H2| Attachment 1| Exhibit A
Area. The Chamber of Commerce is requesting that the City levy an assessment of 100% of the business license fee for businesses in the DPBIA. Each licensed business in the Improvement Area shall contribute to the assessment. Activities and improvements in the DPBIA are funded by the assessment.
The proposed work plan and budget for Fiscal Year 2025-2026 is as follows:
2024-2025
ESTIMATED
2025-2026
REQUESTED
REVENUES
BIA Assessments- Received from the City $ 14,620 $ 14,500 Revenue from Events - -
Total Revenues 14,620 14,500
EXPENSES
Events (668) (4,000)
Beautification/Miscellaneous (31,000)
Bank Service Charge (18)
Marketing (5,265) (5,000)
Administration (1,462) (1,450)
Total Expenses (7,413) (41,450)
Net Income 7,207 (26,950)
BEGINNING AVAILABLE BALANCE 36,354 43,561
ENDING AVAILABLE BALANCE $ 43,561 $ 16,611
This report shall be filed with the City Clerk on behalf of the DPBIA for Fiscal Year 2025-2026.
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H3
Department: Community
Services &
Promotions
Date: 6/10/25
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: TERRIE BANISH, DIRECTOR COMMUNITY SERVICES & PROMOTIONS PREPARED BY: TERRIE BANISH, DIRECTOR COMMUNITY SERVICES &
PROMOTIONS
SUBJECT: Atascadero Tourism Business Improvement District (ATBID) Confirmation of Annual Assessment (FY 2025-2026)
RECOMMENDATION:
Council adopt Draft Resolution, confirming the annual Business Improvement District assessment on lodging businesses within the Atascadero Tourism Business Improvement District (Fiscal Year 2025-2026).
DISCUSSION:
The City of Atascadero established the Atascadero Tourism Business Improvement District (ATBID) to levy annual assessments under the Parking and Business Improvement Area Law of 1989, by adopting Title 3, Chapter 16 of the Atascadero Municipal Code in April 2013. The activities to be funded by the assessments, on lodging businesses within the ATBID, are tourism promotions and marketing programs to promote the City as a tourism destination. The formation and operation of a Tourism Business Improvement District is governed by the California Streets and Highways Code (Section 36500 et. Seq.). The budget for the ATBID is submitted in conjunction with the City’s annual budget.
The City Council appointed ATBID Advisory Board Members to serve at the pleasure of the Council. The Advisory Board is made up of lodging business owners or employees, or other representatives holding the written consent of a lodging business owner within the ATBID area.
The Streets and Highways Code requires that the Advisory Board provide a specific report to the City Council annually for the expenditure of funds derived from the assessment paid by lodging businesses within the City. The annual report must identify: (1) proposed activities, programs, and projects for the fiscal year; (2) the approximate cost of such activities, programs and projects for the fiscal year; (3) the method and basis of levying the assessment; (4) the amount of surplus
6/10/25 | Item H3 | Staff Report
or deficit revenues carried over from a previous fiscal year; and (5) contributions received other than assessments. The annual report must meet the requirements of the California Streets and Highways Code §36533. The City Council may approve the report as filed or may modify any contained in the report and approve it as modified.
Assessments are collected and remitted by each lodging business equal to 2.5% of the rent charged by the business as defined in Atascadero Municipal Code Section 3-16 and Section 3-03.
ATBID assessment revenue in fiscal year 2025-2026 is expected to be approximately $510,800, which includes the Assessment increase from 2% to 2.5% that started on January 9, 2025. The Assessment increase of 0.5% is focused on improvements to the Zoo and adjacent areas in Lake Park to drive events, tourism and additional hotel stays. Expenses for 2025-2026 are projected to be $503,680. The net change in the fund balance for 2025-2026 is projected to be $23,400, and the fund balance is projected to be $752,280 on June 30, 2026.
The Annual Report includes the above assumptions. Following the public hearing, staff recommends that Council adopt the Resolution. Adoption of the Resolution constitutes the levying of the assessment.
FISCAL IMPACT:
Annual assessments are expected to be approximately $510,800 and expenditure are budgeted at $503,680 for fiscal year 2025-2026.
ALTERNATIVE:
Council may direct staff to amend the Resolution before adoption.
REVIEWED BY OTHERS:
This item has been reviewed by the Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENT:
1. Draft Resolution
6/10/25 | Item H3 | Attachment 1
DRAFT RESOLUTION
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ATASCADERO, CALIFORNIA, CONFIRMING THE
ANNUAL BUSINESS IMPROVEMENT DISTRICT ASSESSMENT ON
LODGING BUSINESSES WITHIN THE ATASCADERO TOURISM
BUSINESS IMPROVEMENT DISTRICT (ATBID)
FOR FISCAL YEAR 2025/2026
WHEREAS, the City of Atascadero established the Atascadero Tourism Business Improvement District (ATBID) consistent with Section 36500 et seq. of the Streets and Highways Code of the State of California; and
WHEREAS, the City Council has determined to set the assessment at two and a half percent (2.5%) of the rent charged by the Business per occupied room or space per night for transient occupancies; and
WHEREAS, the purpose of this assessment is to provide tourism promotions and marketing programs to promote the City as a tourism destination pursuant to the Streets and Highways Code of the State of California; and
WHEREAS, the City Council, having received the annual report from the ATBID, adopted Resolution No. 2025-006, declaring intent to levy annual ATBID assessment pursuant to Section 36534 of the California Streets and Highways Code; and
WHEREAS the City Council did fix a time and place for a public hearing on the levy of the proposed assessment for fiscal year 2025-2026; and
WHEREAS, on June 10, 2025, the City Council conducted a public hearing at the date and time for such purpose; and
WHEREAS, the City Council did not receive the required number of protests for the levy of such assessment.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. The City Council of the City of Atascadero does hereby confirm the assessment at two and a half percent (2.5%) of the rent charged by the Business per occupied room or space per night for transient occupancies.
6/10/25 | Item H3 | Attachment 1
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of June 2025.
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO
___________________________________
Charles Bourbeau, Mayor
ATTEST:
___________________________________
Lara K. Christensen, City Clerk
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H4
Department: Administrative
Services
Date: 6/10/25
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: JERI RANGEL, DIRECTOR OF ADMINISTRATIVE SERVICES
PREPARED BY: CINDY CHAVEZ, DEPUTY DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: Apple Valley Assessment Districts
RECOMMENDATIONS:
Council:
1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto for fiscal year 2025/2026.
2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2025/2026 for Street and Storm Drain Maintenance District No. 01 (Apple Valley).
3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto in fiscal year 2025/2026.
4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2025/2026 for Landscaping and Lighting District No. 01 (Apple Valley).
DISCUSSION:
The City Council formed and began assessing Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) in 2005. This district was formed to provide funding for future routine maintenance of the streets, storm drains and sidewalks in the Apple Valley subdivision.
The City Council also formed and began assessing Landscaping and Lighting Maintenance District No. 01 (Apple Valley) in 2005. This district was formed to provide for funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscape and lighting improvements within the Apple Valley subdivision.
6/10/25 | Item H4 | Staff Report
NBS, an independent financial consultant, was hired to prepare the engineer’s report for the two districts. The engineer’s reports and the levies must be approved by Council annually. This is done in a two-step process. Last month, three resolutions for each district (a total of 6 resolutions in all) were passed to begin the process of continuing the levies. At that time, the Engineer’s Reports were preliminarily approved, proceedings were initiated for the levy, and the date of tonight’s public hearing was established. The resolutions that are before the Council tonight are for the final approval of the Engineer’s Reports and for the approval of the annual levies.
The proposed assessments for fiscal year 2025/2026 are less than the Maximum Assessment Rate. In accordance with the formula voters of the district adopted in 2005, the Maximum Assessment Rate may be increased for inflation by the greater of the Consumer Price Index (CPI) or 3.0%. The Maximum Assessment Rate was increased 3.0% (CPI) this year for both districts.
An Assessment Information Notice was mailed to all property owners in late April. The notice provided City staff contact information for questions and comments, dates for the related Council meetings, information on how to participate in the meeting, and the proposed and current levies for both districts.
Staff has reviewed the short- and long-term costs to maintain the districts and recommends the total cost of both districts of $1,450 remains flat when compared to the prior year. The Landscaping and Lighting District levy is about 43% of the allowable maximum annual assessment and the Street and Storm Drain District is about 58% of the allowable maximum annual assessment.
D
A
A
F
A
P
A
F
At
Ma
$ 5$ 5
At
Ma
$ 9$ 9
The levies for fiscal year 2025/2026 are proposed with no increases and reserves are sufficient for now; however, staff predicts that the districts will likely see future increased costs due to aging infrastructure and increases in utilities, materials, and labor costs. City staff will continue to maximize efficiencies and minimize these increases as much as possible.
6/10/25 | Item H4 | Staff Report
FISCAL IMPACT:
Annual assessments for 2025/2026 will total $38,500 for road/drainage system maintenance and $63,000 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Apple Valley. Contributions of $10,750 for half the cost of the park will be made from the City’s General Fund, $6,770 of which will be from contributions made by the developer.
REVIEWED BY OTHERS:
This item has been reviewed by the Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENTS:
1. Draft Resolution A
2. Draft Resolution B
3. Engineer’s Annual Levy Report - Street and Storm Drain Maintenance District No. 01 (Apple Valley)
4. Draft Resolution C
5. Draft Resolution D
6. Engineer’s Annual Levy Report – Landscaping and Lighting District No. 01 (Apple Valley)
6/10/25 | Item H4 | Attachment 1
DRAFT RESOLUTION A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING THE FINAL ENGINEER’S
REPORT REGARDING THE STREET AND STORM DRAIN
MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY), AND THE LEVY
AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO
FOR FISCAL YEAR 2025/2026
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as “City Council”), pursuant to the provisions the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”), did by previous Resolution order the Engineer, NBS, to prepare and file a report in accordance with the Act in connection with Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the “District”) and the proposed levy and collection of assessments related thereto for fiscal year 2025/2026, said fiscal year starting July 1, 2025 and ending June 30, 2026; and WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report for Street and Storm Drain Maintenance District No. 01 (Apple Valley), fiscal year 2025/2026” (hereafter referred to as “Engineer’s Report”) in accordance with the Act; and WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as presented, and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer’s Report.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. The above recitals are true and correct.
SECTION 2. The Engineer’s Report as presented, consists of the following:
a) Plans and specifications that describe the District and Improvements. b) Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel’s proportional special benefit assessment.
c) The Budget that outlines the costs and expenses to service and maintain the improvements including incidental expenses to operate the District. d) An Assessment Diagram that identifies the boundaries of the District.
6/10/25 | Item H4 | Attachment 1
e) An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and the assessment for fiscal year 2025/2026.
SECTION 3. The Engineer’s Report as presented, is hereby approved, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.
SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer’s Report.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of June, 2025.
On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
6/10/25 | Item H4 | Attachment 2
DRAFT RESOLUTION B
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2025/2026 FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01
(APPLE VALLEY)
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings to levy special benefit assessments against parcels of land within Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2025 and ending June 30, 2026; pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”) to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of-way improvements and storm drain facilities related thereto; and WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Report in connection with the proposed levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer’s Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2025 and ending June 30, 2026, to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-ofway improvements and storm drain facilities related thereto; and WHEREAS, the City Council conducted in May 2005 a property owner protest ballot proceeding for the District assessments proposed to be levied and majority protest of the assessments described in the Engineer’s Report did not exist pursuant to the provisions of the California State Constitution Article XIIID.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer’s Report prepared in connection therewith; the levy and collection of assessments, and considered the oral and written statements, protests and communications made or filed by interested persons.
SECTION 2. Based upon its review of the Engineer’s Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that:
a) The land within District will receive special benefit by the operation, maintenance and servicing of improvements to be provided by the District. b) The District includes the lands receiving such special benefit.
6/10/25 | Item H4 | Attachment 2
c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2025 and ending June 30, 2026.
SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street right-of-way improvements and storm drain facilities within the District and the appurtenant facilities related thereto.
SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City.
SECTION 5. The City shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution.
SECTION 6. The adoption of this Resolution constitutes the establishment of the maximum assessment rate described in the Engineer’s Report and the levy of assessments for the fiscal year commencing July 1, 2025 and ending June 30, 2026.
SECTION 7. The City Clerk or her designee is hereby authorized and directed to file the levy with the County Auditor, per Section 54718 of the Act, upon adoption of this Resolution.
PASSED AND ADOPTED at a regular meeting of the City Council held on the ____th day of June, 2025.
On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
nbsgov.com
Prepared by:
Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Fiscal Year 2025/26 Engineer’s Report
Street and Storm Drain Maintenance
District No. 01 (Apple Valley)
May 2025
6/10/25 | Item H4 | Attachment 3
CITY OF ATASCADERO
Street and Storm Drain Maintenance District No. 01
(Apple Valley)
6500 Palma Avenue
Atascadero, CA 93422
Phone – (805) 461-5000
Fax – (805) 461-7612
CITY COUNCIL
Charles Bourbeau, Mayor
Mark Dariz, Mayor Pro Tem
Susan Funk, Council Member
Seth Peek, Council Member
Heather Newsom, Council Member
AGENCY STAFF
Jim Lewis, City Manager
Jeri Rangel, Administrative Services Director
Cindy Chavez, Deputy Director of Administrative Services NBS
Tim Seufert, Client Services Director
Adina McCargo, Project Manager
Danielle Robison, Administrator
6/10/25 | Item H4 | Attachment 3
TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Executive Summary ........................................................................................................ 2
3. Plans and Specifications .................................................................................................. 4
3.1 Benefiting Properties within the District ................................................................ 4
3.2 Funding Authorized by the 1982 Act ....................................................................... 4
3.3 Description of Improvements and Services ............................................................ 4
4. Estimate of Costs ............................................................................................................ 9
5. Method of Assessment ................................................................................................. 10
5.1 General .................................................................................................................. 10
5.2 Benefit Analysis ..................................................................................................... 10
5.3 Assessment Methodology ..................................................................................... 11
5.4 Assessment Range Formula .................................................................................. 14
6. Assessment Diagram ..................................................................................................... 15
7. Assessment Roll ............................................................................................................ 16 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 1
1. ENGINEER’S LETTER
WHEREAS, on March 24, 2005 by Resolution No. 2005-042, the City Council of the City of Atascadero (the ”City”), State of California, in accordance with and pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), established the City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) (the “District”); and
WHEREAS, on May 13, 2025, the City Council, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer’s Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received.
NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2025/26:
FY 2025/26 Summary of Assessment
Description Amount
Estimated Annual Costs $21,850
Capital Reserve Collection/(Uses) 24,090
Levy Adjustments (7,440)
Balance to Levy $38,500
Fiscal Year 2025/26 Maximum Rate $954.49
Fiscal Year 2025/26 Proposed Applied Rate $550.00
I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1982 Act.
City Engineer
6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 2
2. EXECUTIVE SUMMARY
Pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as “City”), proposed to form and levy special benefit assessments for the district designated as:
Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the “District”), which includes the lots and parcels of land within the residential subdivision known as Apple Valley, Tract 2495 within the City limits of the City. This Engineer’s Report (hereafter referred to as the “Report”) has been prepared in connection with the levy and collection of annual assessments related thereto for Fiscal Year 2025/26.
The City Council formed the District and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution.
This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities. The annual assessments described herein will provide a funding source for the continued operation and maintenance of streets, storm drain system, and appurtenant facilities installed in connection with the development of properties within the District.
The improvements and assessments described in this Report are based on the development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the streets and storm drain system that provides special benefits to properties within the District. The structure of the District (organization), the improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2495; and by reference these plans and specifications are made part of this Report.
The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the San Luis Obispo County Assessor’s Office. The San Luis Obispo County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.
As part of this District’s formation, the City conducted a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council conducted a noticed public hearing to 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 3 consider public testimonies, comments, and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, property owner protest ballots received were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation.
The tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein; therefore, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. The assessments for Fiscal Year 2005/2006 were submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel.
Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, proposed services, the annual budget or assessments for that fiscal year and the City Council may hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment. 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 4
3. PLANS AND SPECIFICATIONS
3.1 Benefiting Properties within the District
The territory within the District consists of the lots, parcels, and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (27.71 acres).
This residential subdivision includes seventy (70) single-family residential homes. The subdivision is situated in the northern portion of the City just southwest of Highway 101 and is generally located:
South of Del Rio Road;
North of Conejo Road;
West of Ramona Road; and,
East of Graves Creek.
3.2 Funding Authorized by the 1982 Act
As generally defined by the 1982 Act and applicable to this District, the City may impose a benefit assessment to finance the maintenance and operation costs of the following services:
Drainage and Flood Control;
Streets and Roads.
In addition to imposing a benefit assessment for the annual maintenance and operation of the District improvements, the City may also authorize an assessment or utilize existing assessment revenues to finance the installation, construction, or replacement of drainage and flood control facilities as well as the street and road improvements (with some limitations). While such activities are permitted under the 1982 Act, the budget and assessments for this District only provide for normal maintenance and operation of the improvements. Since most major rehabilitation/construction projects result from unforeseen damages, the extent and cost of such projects are not easily predicted and to accumulate funds as part of the normal annual assessments would not be reasonable. If such funding becomes necessary, the City may present a new or increased assessment to the property owners to support the projects.
3.3 Description of Improvements and Services
The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as Apple Valley, Tract 2495 pursuant to approved development plans and agreements. The improvements may consist of all or a portion of the public streets, drainage and flood control facilities associated with Tract 2495 and the maintenance of these improvements may include but are not limited to the materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition.
6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 5 The maintenance of the improvements and related activities shall be funded entirely or partially through the District assessments. The District improvements and services are generally described as:
Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage, or other facilities within the public street rights-of-way installed in connection with the development of properties in Tract 2495 and that have been dedicated to the City; Storm drain and flood control maintenance that may include but is not limited to inspection, repair and servicing of drainage basins, inlets, catch basins, manholes, outlets, drywells, pumps, filters, and storm drain pipes installed in connection with the development of properties of Tract 2495 as well as any off-site improvements and facilities directly associated with the aforementioned infrastructure that is deemed necessary to service or protect the properties including waste water treatment;
The appurtenant, equipment, materials, and service contracts related to the aforementioned improvements and facilities;
Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City; that may be provided by another assessment or tax levied by the City; or that may be provided and maintained by a Homeowner’s Association or similar entity.
Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received.
3.3.1 STREET MAINTENANCE
The street maintenance program may include but is not limited to: the repair of potholes, cracks, or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches, and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing, or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays, and restriping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the City’s Public Works Department as necessary to extend the life of the streets or to improve traffic circulation and safety as available funding permits. Specifically, the street improvements for this District are identified as:
Approximately 106,460 square feet of asphalt street surface located on the perimeter of the development (south half of Del Rio Road); and the various interior streets identified as Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, and San Ramon Road. 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 6 Approximately 5,320 linear feet of curb and gutter along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road, and Conejo Road; Approximately 3,545 square feet of decorative street pavers and 1,254 linear feet of curb and gutter in and around the two median islands on San Ramon Road (entryways to the development at Del Rio Road and Conejo Road);
Approximately 70 driveway approaches, 25,394 square feet of sidewalks and various street signs within the District;
Specifically, not included as part of the street maintenance program are the costs associated with major replacements or reconstruction. Although the District assessments will provide funding for regular maintenance and servicing of the improvements that will extend the useful life of the street improvements, the assessments are not intended to fund major replacements or reconstruction of the street surfaces or adjacent improvements such as curbs, gutters, or driveway approaches. The costs of extensive replacement or reconstruction activities such as grinding and resurfacing of the asphalt; and replacement of curbs, gutters, driveway approaches, and sidewalks is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982 Act. When such repairs or activities are deemed necessary, the City will consider various financing options including new or increased assessments for property owner approval.
The Public Works Department shall authorize the operational activities and maintenance of the public street and right-of-way improvements, facilities, and services that may include, but are not limited to:
Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters;
Annual inspection of street surface and repair of potholes and surface cracks as needed; Periodic slurry or overly of street surfaces and driveway approaches (typically one or the other once every five years);
Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks, and intersections (typically in conjunction with slurry or overly activities); Graffiti abatement of public improvements within the street rights-of-way that are maintained by the District including but not limited to sandblasting, repainting and repair of fences, walls, barricades, sidewalks, and signage as needed;
Annual inspection and periodic repair or replacement of decorative street- pavers as needed; Annual inspection and minor repairs of curbs, gutters, driveway approaches, and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street;
Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices; Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street rights-of-way as needed.
6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 7 A portion of the services described above are not performed on an annual basis but rather on a periodic basis, such as slurry sealing or overlaying the asphalt streets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase.
3.3.2 STORM DRAIN AND FLOOD CONTROL MAINTENANCE
The storm drain and flood control system associated with the District may include but is not limited to:
drainage basins and bio-filters; channel ways; storm drain inlets, catch basins, manholes, outlets; drywells, pumps, filters and pipes. The storm drain system to be maintained primarily involves on-site facilities (within the District boundaries) but may also include off-site improvements such as water treatment equipment, facilities or services mandated or required by Federal, State, or County regulations for water pollution control.
The annual assessments for this District are intended to support a storm drain and flood control maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District. This maintenance program may include but is not limited to:
inspection and documentation of the system; cleaning, servicing, or repair of the facilities and equipment; and the partial replacement or rehabilitation of equipment and facilities. The storm drain and flood control system includes but is not limited to:
Approximately 30,050 square feet of drainage basin area; Twenty-eight (28) inlets, outlets, and manholes located throughout Tract 2495; Approximately 2,100 linear feet of storm drain pipe ranging from 18 inches to 42 inches in diameter.
The Public Works Department shall authorize and schedule the operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities, and services that may include, but are not limited to:
Cleaning of storm drain inlets, catch basins, manholes, and pipes as needed; Stencil maintenance and documentation of facilities as required by Federal, State, or County regulations;
Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channel ways as needed;
Debris removal and pest control in and around the storm drain facilities as needed; Minor repairs and maintenance of the storm drain inlets, catch basins, and outlets as needed; Street sweeping services necessary to control debris and water flow for the storm drain system; and,
6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 8 The operational costs related to NPDES compliance requirements.
A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins, and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund).
The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 9
4. ESTIMATE OF COSTS
Budget 2025/26 Assessment
DIRECT COSTS
Streets, Roads & Storm Drain Improvements
Street Maintenance $8,600
Inspection & Operational Services - Roads, Drainage 6,980 Traffic Sign Replacement 0
Total Annual Direct Costs $15,580
ADMINISTRATION EXPENSES
City Annual Administration $2,020
Engineer's Report & Services 4,050
Public Noticing 200
Total Annual Administration Costs $6,270
TOTAL DIRECT & ADMINISTRATION COSTS $21,850
CAPITAL RESERVE COLLECTIONS/(USES)
Collection for Street Surface Activities $21,800
Collection Street Re-striping 80
Collection for Repair Activities: Curbs, Gutters, Approaches & Sidewalks 850 Collection for Debris Removal 380
Collection for Storm Drain Fencing 380
Collection for Storm Drain Infrastructure 600
Total Annual Capital Reserve Collections/(Uses) $24,090
LEVY ADJUSTMENTS
Interest Income - Improvement Fund ($16,214)
Interest Income - Operating Reserve Fund (346)
Reserve Fund Collection/(Use) 9,120
Total Levy Adjustments ($7,440)
BALANCE TO LEVY $38,500
DISTRICT STATISTICS
Total Parcels 74
Parcels Levied 70
Total EBU (1) 70
Levy per EBU $550.00
Maximum Levy per EBU $954.49
FUND BALANCE INFORMATION
Beginning Operating Reserve Balance $11,967
Operational Reserve Interest 346
Surplus Transfer from Improvement Fund 9,330
Operational Reserve Collection (Use) (7,440)
Estimated Ending Operating Reserve Balance $14,203
Beginning Improvement Fund Balance $633,836
Improvement Fund Interest 16,214
Surplus Transfer to Operations Fund (9,330)
Improvement Fund Collection/(Use) 24,090
Estimated Ending Improvement Fund Balance $664,810
(1) Levy per EBU rate does not include the County of San Luis Obispo fee of $2.00 per parcel 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 10
5. METHOD OF ASSESSMENT
5.1 General
The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation, and servicing of drainage and flood control improvements as well as streets, roads, and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service”.
Furthermore:
“The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized … is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments…. The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied.”
The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices in compliance with the provisions of the 1982 Act and the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel.
5.2 Benefit Analysis
Each of the proposed improvements and services, and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City’s General Plan. As such the ongoing operation, servicing, and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance of the improvements that is over and above any general benefits that may be conferred by such improvements and services.
The ongoing maintenance and servicing of the District improvements is an integral part of the appearance, use and preservation of the properties within the District and such services to be funded by annual assessments confer a particular and distinct special benefit to those parcels. The proper maintenance of streets and appurtenant facilities allows individual parcels to be used to their fullest extent by ensuring the safe and 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 11 efficient movement of people and goods to and from the benefiting properties. Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain, which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District.
Although the improvements may include public streets and storm drain facilities that connect to similar facilities outside the District boundaries, it is clear that the construction and installation of these improvements were only necessary for the development of properties within the District. As such, these improvements were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the ongoing maintenance, servicing and operation of the District improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. Any improvement or portion thereof (particularly off-site storm drain facilities) that may be considered general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within this District. However, the costs associated with installation or improvement of any off-site facilities that benefit the parcels within this District as well as other properties (shared benefit) may be allocated to the parcels within the District based on their proportional special benefit from such improvements.
5.3 Assessment Methodology
The costs associated with the improvements and services shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIIID Section 4, each parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements.
The method of apportionment established for this District and described herein, reflects the proportional special benefit each property receives from the improvements and services based on the actual or proposed land use of that parcel as compared to other properties within the District based on similarities and differences in parcel land use.
5.3.1 EQUIVALENT BENEFIT UNITS:
To assess benefits equitably it is necessary to relate each property’s proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1982 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment. A single-family home site equals one Equivalent Benefit Unit (EBU) and the other land uses are converted to a weighted EBU based on an assessment formula that equates the property’s specific development status, type of development (land use), and size of the property, as compared to a single-family home site.
Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 12 applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District.
5.3.2 EBU APPLICATION BY LAND USE:
(1) Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against (i.e. Equivalent Benefit Unit “EBU”). (2) Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile-home parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel’s total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density (number of units) increases; the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases.
Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential property is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units; 0.50 EBU per unit for units 51 through 100; and 0.25 EBU per unit for the remaining units.
(3) Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors, it has been determined that an appropriate allocation of special benefit for condominiums, town-homes, and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 13 (4) Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). (5) Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not a direct reflection of the property’s special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) an Equivalent Benefit Unit of 1.0 EBU per acre (4 units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.0 EBU (parcels in excess of 25 acres are assigned 25.0 EBU). Parcels less than one acre, shall be assigned a minimum of 1.0 EBU (similar to a vacant lot within a residential tract).
(6) Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.0 EBU. This land use classification may include but is not limited to:
Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);
Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks, or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels, or bifurcated lots or properties with very restrictive development use.
These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status.
6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 14 (7) Special Cases — In many districts where multiple land use classifications are involved, there are usually one or more properties for which the standard land use classifications do not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel’s total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel.
The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined.
Property Type
Equivalent
Benefit Units Multiplier
Single-family Residential 1.00 Per Unit/Lot/Parcel
Multi-family Residential
0.75 Per Unit for the First 50 Units
0.50 Per Unit for Units 51-100
0.25 Per Unit for all Remaining Units
Condominium/Townhome Units 0.75 Per Unit
Planned Residential
Development
1.00 Per Planned SF Residential Lot
0.75 Per Planned Condominium
0.75 Per Unit for the First 50 Units
0.50 Per Unit for Units 51-100
0.25 Per Unit for all Remaining Units
Vacant Residential Land 1.00 Per Acre
Exempt Parcels 0.00 Per Parcel
The following formula is used to calculate each parcel’s EBU (proportional benefit).
Parcel Type EBU x Acres or Units = Parcel EBU
The total number of Equivalent Benefit Units (EBU’s) is the sum of the individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU’s of the parcels benefiting from the improvements. This Rate is then applied back to each parcel’s individual EBU to determine the parcel’s proportionate benefit and assessment obligation for the improvements.
Total Balance to Levy / Total EBU = Levy per EBU
Levy per EBU x Parcel EBU = Parcel Levy Amount
5.4 Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 15 The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval included a maximum assessment amount for Fiscal Year 2005/2006 (initial maximum assessment), identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein.
The Assessment Range Formula for this District shall be applied to the future assessments and is generally defined:
If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment.
The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for Fiscal Year 2005/2006 adjusted annually by the greater of, three percent (3%) or the annual percentage change in the Consumer Price Index (CPI) of “All Urban Consumers” for the San Francisco-Oakland-San Jose Area from February to February. The Maximum Assessment rate was increased by 3.000% for Fiscal Year 2025/26.
Beginning with Fiscal Year 2006/2007 and each fiscal year thereafter, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate is calculated independent of the District’s annual budget and proposed assessment. The annual percentage change in CPI is based on available data provided by the U.S. Department of Labor; Bureau of Labor Statistics at the time the annual Report is prepared.
Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. In January 2018, BLS introduced a new geographic area sample for the CPI. As part of the change the index for this area was renamed from San Francisco-Oakland-San Jose to San FranciscoOakland-Hayward. The metropolitan area is comprised of Alameda, Contra Costa, Marin, San Francisco, San Mateo Counties in the State of California. This CPI will be used going forward.
Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment, even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increase the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classification is permitted. Changes in land use or size of an individual property resulting in an assessment increase, are not considered an increased assessment.
To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed.
6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 15
6. ASSESSMENT DIAGRAM
The parcels within the Street and Storm Drain Maintenance District No. 01 (Apple Valley) consist of the lots, parcels, and subdivisions of land located in the residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (27.71 acres) in the northern portion of the City of Atascadero.
The following map is based on the District Diagram, the San Luis Obispo County Assessor’s Maps and the San Luis Obispo County Assessor’s information and identifies the parcels of land within the proposed District, as the same existed at the time the District was formed. The combination of the District Diagram on file with the City Clerk and the Assessment Roll contained in this Report constitute the District Assessment Diagram. 6/10/25 | Item H4 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 01 (Apple Valley) 16
7. ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor’s Office at the time the Engineer’s Report was prepared. A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts is provided herein.
Non-assessable lots or parcels may include but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas, rights-of-way, common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment.
If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
6/10/25 | Item H4 | Attachment 3
City of Atascadero
Street & Storm Drain Maintenance No. 1
Final Billing Detail Report for Fiscal Year 2025/26
APN Address Land Use Benefit Units Max Assessment Grand Total 049-191-039 1975 SAN RAMON RD XMT 0.0 $0.0000 $0.00
049-191-040 1980 SAN RAMON RD XMT 0.0 0.0000 0.00
049-191-041 DEL RIO XMT 0.0 0.0000 0.00
049-192-001 6000 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-002 6010 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-003 6020 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-004 6030 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-005 6040 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-006 6050 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-007 6060 VIA COLONIA RD SFR 1.0 954.4988 550.00 049-192-008 6055 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-009 6045 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-010 6035 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-011 6025 VIA COLONIA RD SFR 1.0 954.4988 550.00 049-192-012 6015 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-013 6005 VIA COLONIA RD SFR 1.0 954.4988 550.00 049-192-014 5045 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-015 5035 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-016 5025 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-017 5015 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-018 5005 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-019 5010 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-020 5020 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-021 5030 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-192-022 5040 VIA COLONIA CT SFR 1.0 954.4988 550.00 049-193-001 6100 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-002 6120 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-003 6130 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-004 6140 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-005 6150 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-006 6160 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-007 6170 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-008 6180 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-010 6200 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-011 6210 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-012 6220 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-013 6225 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-014 6215 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-015 6205 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-016 6195 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-017 6185 VIA HUERTO RD SFR 1.0 954.4988 550.00
049-193-018 6125 VIA HUERTO CT SFR 1.0 954.4988 550.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 1 of 2 04/22/2025 08:34:31AM 6/10/25 | Item H4 | Attachment 3
City of Atascadero
Street & Storm Drain Maintenance No. 1
Final Billing Detail Report for Fiscal Year 2025/26
APN Address Land Use Benefit Units Max Assessment Grand Total 049-193-019 6115 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-020 6105 VIA HUERTO CT SFR 1.0 954.4988 550.00
049-193-021 2180 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-022 2190 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-023 2200 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-024 2210 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-025 2220 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-026 6190 CONEJO RD SFR 1.0 954.4988 550.00
049-193-027 6180 CONEJO RD SFR 1.0 954.4988 550.00
049-193-028 6160 CONEJO RD SFR 1.0 954.4988 550.00
049-193-029 6140 CONEJO RD SFR 1.0 954.4988 550.00
049-193-030 6100 CONEJO RD SFR 1.0 954.4988 550.00
049-193-031 2235 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-032 2225 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-033 2215 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-034 2205 SAN RAMON RD SFR 1.0 954.4988 550.00
049-193-035 2195 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-036 2185 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-037 2175 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-038 2165 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-039 2135 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-040 2125 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-041 2115 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-042 2065 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-043 2055 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-044 2100 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-045 2110 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-046 2140 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-047 2150 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-048 2160 AVENIDA MANZANA RD SFR 1.0 954.4988 550.00 049-193-049 2130 AVENIDA MANZANA XMT 0.0 0.0000 0.00
049-193-051 6190 VIA HUERTO CT SFR 1.0 954.4988 550.00
74 Accounts 70.0 $66,814.9160 $38,500.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 2 04/22/2025 08:34:31AM 6/10/25 | Item H4 | Attachment 3
6/10/25 | Item H4 | Attachment 4
DRAFT RESOLUTION C
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING THE FINAL ENGINEER’S
REPORT REGARDING THE LANDSCAPING AND LIGHTING
DISTRICT NO. 01 (APPLE VALLEY), AND THE LEVY AND
COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO IN
FISCAL YEAR 2025/2026
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as the “City Council”), pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code, did by previous Resolution order the Engineer, NBS, to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500, in connection with the proposed levy for Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the “District”) and the collection of assessments related thereto for the fiscal year starting July 1, 2025 and ending June 30, 2026; and
WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report for the Landscaping and Lighting District No. 01 (Apple Valley), fiscal year 2025/2026” (hereafter referred to as the “Engineer’s Report”) in accordance with the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”); and WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as presented and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer’s Report.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. The above recitals are true and correct.
SECTION 2. The Engineer’s Report as presented, consists of the following:
a) Plans and specifications that describe the District and Improvements. b) Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel’s proportional special benefit assessment as well as a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years.
6/10/25 | Item H4 | Attachment 4
c) The Budget that outlines the costs and expenses to service and maintain the improvements including incidental expenses authorized by the Act to operate the District. d) An Assessment Diagram that identifies the boundaries of the District. e) An Assessment Roll containing each of the Assessor’s Parcel Numbers that comprise the District and the proportional maximum assessment and annual assessment for fiscal year 2025/2026.
SECTION 3. The Engineer’s Report as presented, is hereby approved, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.
SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer’s Report.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of June, 2025.
On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
6/10/25 | Item H4 | Attachment 5
DRAFT RESOLUTION D
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2025/2026 FOR LANDSCAPING AND LIGHTING DISTRICT NO. 01 (APPLE VALLEY) WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings and declared its intention to levy special benefit assessments against parcels of land within the Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the “District”) for fiscal year 2025/2026, said fiscal year commencing July 1, 2025 and ending June 30, 2026; pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act") to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting and appurtenant facilities related thereto; and
WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Report in connection with the proposed levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer’s Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2025 and ending June 30, 2026, to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting, and appurtenant facilities related thereto; and WHEREAS, the City and its legal counsel have reviewed Proposition 218 and found that these assessments comply with applicable provisions of Section XIIID of the California State Constitution.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer’s Report prepared in connection with the levy and collection of assessments, and considered the oral and written statements, protests and communications made or filed by interested persons.
SECTION 2. Based upon its review of the Engineer’s Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that:
a) The land within District will receive special benefit by the operation, maintenance, and servicing of improvements to be provided by the District.
6/10/25 | Item H4 | Attachment 5
b) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2025, and ending June 30, 2026.
SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street lights, landscaping, parks and open space areas within the District and appurtenant facilities related thereto.
SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City.
SECTION 5. The City shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Landscaping and Lighting District No. 01 (Apple Valley), and such money shall be expended for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution.
SECTION 6. The adoption of this Resolution constitutes the levy of assessments for the fiscal year commencing July 1, 2025, and ending June 30, 2026.
SECTION 7. The City Clerk or their designee is hereby authorized and directed to file the levy with the County Auditor, per Sections 22645-22647 of the Act, upon adoption of this Resolution.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of June, 2025.
On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
nbsgov.com
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Fiscal Year 2025/26 Engineer’s Report For:
Landscaping and Lighting District
District No. 01 (Apple Valley)
May 2025
6/10/25 | Item H4 | Attachment 6
CITY OF ATASCADERO
Landscaping & Lighting District No. 01
(Apple Valley)
6500 Palma Avenue
Atascadero, CA 93422
Phone – (805) 461-5000
Fax – (805) 461-7612
CITY COUNCIL
Charles Bourbeau, Mayor
Mark Dariz, Mayor Pro Tem
Susan Funk, Council Member
Seth Peek, Council Member
Heather Newsom, Council Member
AGENCY STAFF
Jim Lewis, City Manager
Jeri Rangel, Administrative Services Director
Cindy Chavez, Deputy Director of Administrative Services NBS
Tim Seufert, Client Services Director
Adina McCargo, Project Manager
Danielle Robison, Administrator
6/10/25 | Item H4 | Attachment 6
TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Executive Summary ........................................................................................................ 2
3. Plans and Specifications .................................................................................................. 4
3.1 Description of the District ....................................................................................... 4
3.2 Improvements and Services Authorized by the 1972 Act ....................................... 4
3.3 Description of Improvements and Services ............................................................ 5
4. Estimate of Costs ............................................................................................................ 7
5. Method of Assessment ................................................................................................... 8
5.1 General .................................................................................................................... 8
5.2 Benefit Analysis ....................................................................................................... 8
5.3 Assessment Methodology ....................................................................................... 9
5.4 Assessment Range Formula .................................................................................. 13
6. Assessment Diagram ..................................................................................................... 15
7. Assessment Roll ............................................................................................................ 16 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 1
1. ENGINEER’S LETTER
WHEREAS, on March 24, 2005 by Resolution No. 2005-045, the City Council of the City of Atascadero (the “City”), State of California, in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500 (the “1972 Act”) established the City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) (the “District”); and
WHEREAS, on May 13, 2025, the City Council, under the 1972 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer’s Report for the District; and
WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received.
NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2025/26:
FY 2025/26 Budget Summary
Description
Total
Costs
Costs Not
Assessed
Proposed
Assessment
Total
Benefit
Units
Maximum
Rate
Proposed
Rate
Per BU
Annual Maintenance $66,100 ($10,100) $56,000
Special Annual Projects 19,560 0 19,560
Administration 7,780 0 7,780
Capital Reserve Collections/(Uses) 5,491 (650) 4,841
Levy Adjustments (25,181) 0 (25,181)
Total $73,750 ($10,750) $63,000 70 $2,085.87 $900.00
I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1972 Act.
City Engineer
6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 2
2. EXECUTIVE SUMMARY
Pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as “Article XIIID”), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as “City”), executed the proceedings required for the establishment of the special benefit assessment district designated as:
Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the “District”), which includes the lots and parcels of land within the residential subdivision known as Apple Valley, Tract 2495 within the City limits of the City. This Engineer’s Report (hereafter referred to as the “Report”) has been prepared in connection with the levy and collection of annual assessments related thereto for Fiscal Year 2025/26, as required pursuant to Chapter 1, Article 4 of the 1972 Act.
The City Council formed the District and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the landscaping and lighting improvements associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provisions of Article XIIID.
This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The annual assessments will provide a funding source for the continued operation and maintenance of public landscaping and lighting improvements installed in connection with the development of properties within the District.
The improvements and assessments described in this Report are based on the planned development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the improvements. The boundaries of the District, the proposed improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2495; and by reference these plans and specifications are made part of this Report.
The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the San Luis Obispo County Assessor’s Office. The San Luis Obispo County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.
As part of the District formation, the City of Atascadero conducted a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council conducted a noticed public hearing on May 24, 2005 to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 3 property owner protest ballots received were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. Tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. The assessments for Fiscal Year 2005/2006 were submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel.
Each subsequent fiscal year, an Engineer’s Report shall be prepared and presented to the City Council describing the District any changes to the District or improvements and the proposed budget and assessments for that fiscal year and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment.
6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 4
3. PLANS AND SPECIFICATIONS
3.1 Description of the District
The territory within the District consists of the lots, parcels and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (27.71 acres).
This residential subdivision includes seventy (70) single-family residential homes. The subdivision is situated in the northern portion of the City of Atascadero just southwest of Highway 101 and is generally located:
South of Del Rio Road;
North of Conejo Road;
West of Ramona Road; and,
East of Graves Creek
3.2 Improvements and Services Authorized by the 1972 Act As generally defined by the 1972 Act and applicable to this District, the improvements and associated assessments may include one or more of the following:
1) The installation or planting of landscaping;
2) The installation or construction of statuary, fountains, and other ornamental structures and facilities; 3) The installation or construction of public lighting facilities including, but not limited to street lights and traffic signals;
4) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof; 5) The installation of park or recreational improvements, including, but not limited to, all of the following:
a) Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage.
b) Lights, playground equipment, play courts, and public restrooms. 6) The acquisition of land for park, recreational, or open-space purposes or any existing improvement otherwise authorized pursuant to this section.
7) The maintenance or servicing, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement including but not limited to:
a) Repair, removal, or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 5 d) The removal of trimmings, rubbish, debris, and other solid waste; e) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti;
f) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; g) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.
8) Incidental expenses associated with the improvements including, but not limited to:
a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment;
b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
f) Costs associated with any elections held for the approval of a new or increased assessment.
3.3 Description of Improvements and Services
The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. The improvements may consist of all or a portion of the public landscaped areas, street lighting and appurtenant facilities within and adjacent to the District (Tract 2495). These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or rights-of-way constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as:
Streetscape landscaping including street trees located on the perimeter of the development and interior streets of Tract 2495 that are within the public rights-of-way or easements and dedicated to the City for maintenance;
Open space areas and fuel modification areas within or adjacent to the District boundaries; Park areas, recreational equipment, trails and landscaped drainage facilities developed and constructed as part of developing properties within Tract 2495; Public lighting facilities including street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvement areas; Appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements;
Specifically not included as District improvements are those improvements located on private property, improvements and facilities that may be provided or maintained by an agency other than the City; improvements and facilities that may be provide by another assessment or tax 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 6 levied by the City or any improvement provided and maintained by a Homeowner’s Association or similar entity.
Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report.
Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received.
3.3.1 LANDSCAPE IMPROVEMENTS
The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, trees, irrigation and drainage systems, ornamental lighting, masonry walls or other fencing, hardscape improvements, monuments, and associated appurtenant facilities located within the landscape easements or public rights-of-way. Specifically the landscape improvement areas for this District are identified as:
Approximately 30,580 square feet of streetscape (parkway) landscaping within the public rights-ofway located on the perimeter of the development (south side of Del Rio Road); and along various locations of the interior streets including Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, and San Ramon Road.
Approximately 108 street trees located along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road and Conejo Road; Approximately 12,541 square feet of landscaping and trees within the median islands on San Ramon Road located at the two entryways to the development (Del Rio Road and Conejo Road); Approximately 106,460 square feet of non-irrigated open space area within the District; Approximately 109,837 square feet of irrigated park and open space areas within the boundaries of the District including 56,647 square feet of turf; 40,335 square feet of irrigated open space; and 12,855 square feet of landscaped slopes within two drainage basins (6,690 and 6,165 square feet respectively); along with various trees and picnic areas; Approximately 10,320 square feet of paths and trails, 25,394 square feet sidewalks and 5,145 linear feet of fencing within and adjacent to the various landscape improvement areas.
3.3.2 PUBLIC LIGHTING IMPROVEMENTS
The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with:
Lighting facilities located within the landscaped areas including safety lights, security lights or ornamental lights installed as part of the District improvements. 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 7
4. ESTIMATE OF COSTS
Total Costs Not 2025/26
BUDGET Budget Assessed Assessment
DIRECT COSTS
Annual Costs
Landscape Services $45,000 ($6,550) $38,450
Landscape Supplies 1,100 0 1,100
Landscape Utilities 14,200 (3,550) 10,650
City Landscape Services 3,800 0 3,800
Infrastructure Improvements 2,000 0 2,000
Total Annual Direct Costs 66,100 ($10,100) $56,000
CAPITAL EXPENDITURES
Special Projects $19,560 $0 $19,560
Total Annual Special Projects $19,560 $0 $19,560
ADMINISTRATION EXPENSES
Annual Administration Expenses
City Annual Administration $2,230 $0 $2,230
Engineer's Report & Services 5,200 0 5,200
Public Noticing 350 0 350
Total Administration $7,780 $0 $7,780
TOTAL DIRECT & ADMINISTRATION COSTS $93,440 ($10,100) $83,340
CAPITAL RESERVE COLLECTIONS/(USES)
Landscape Rehabilitation/Replacement $1,300 ($650) $650 Median Rehabilitation/Replacement 238 0 238
Open Space Rehabilitation/Replacement 1,120 0 1,120
Tree Rehabilitation/Replacement 2,033 0 2,033
Other Rehabilitation/Replacement 800 0 800
Total Annual Capital Reserve Collections/(Uses) $5,491 ($650) $4,841
LEVY ADJUSTMENTS
Interest Income - Improvement Fund ($3,079) $0 ($3,079) Interest Income - Operating Reserve Fund (1,401) 0 (1,401) Contributions from other Sources (10,750) 0 (10,750)
Reserve Collection/(Use) (9,951) 0 ($9,951)
Total Levy Adjustments ($25,181) 0 ($25,181)
BALANCE TO LEVY $73,750 ($10,750) $63,000
DISTRICT STATISTICS
Total Parcels 74
Parcels Levied 70
Total EBU (1) 70
Levy per EBU $900.00
Maximum Levy per EBU $2,085.87
FUND BALANCE INFORMATION
Beginning Operating Reserve Balance $44,186
Operational Reserve Interest 1,401
Surplus Transfer from Improvement Fund 33,184
Operational Reserve Collection (Use) (25,181)
Estimated Ending Operating Reserve Balance $53,590
Beginning Improvement Fund Balance $142,424
Improvement Fund Interest 3,079
Surplus Transfer to Operations Fund (33,184)
Improvement Fund Collection/(Use) 5,491
Estimated Ending Improvement Fund Balance $117,810
(1) Levy per EBU rate does not include the County of San Luis Obispo fee of $2.00 per parcel 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 8
5. METHOD OF ASSESSMENT
5.1 General
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include the construction, maintenance, and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices and have been established pursuant to the 1972 Act and the provisions of Article XIIID. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel.
5.2 Benefit Analysis
Each of the proposed improvements, the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1972 Act and Article XIIID. The improvements provided by this District and for which properties will be assessed have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District.
5.2.1 SPECIAL BENEFIT
The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the presence of public lighting and well-maintained landscaping in close proximity to those properties
The special benefits associated with landscape improvements are specifically:
Enhanced desirability of properties through association with the improvements. Improved aesthetic appeal of properties providing a positive representation of the area and properties.
6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 9 Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention.
Increased sense of pride in ownership of property within the District resulting from wellmaintained improvements associated with the properties. Enhanced quality of life through well-maintained green space and landscaped areas. Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti. Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.
The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically:
Enhanced deterrence of crime and the aid to police protection. Increased nighttime safety on roads, streets and public areas. Improved ability of pedestrians and motorists to see. Improved ingress and egress to property.
Reduced vandalism and other criminal act and damage to improvements or property. Improved traffic circulation and reduced nighttime accidents and personal property loss.
The preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District.
5.2.2 GENERAL BENEFIT
In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly affect the properties within the District. Although the improvements include public areas, easements, rights-ofway and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District.
5.3 Assessment Methodology
The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 10 benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel’s actual land use or proposed development.
The costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the Article XIIID Section 4, each parcel’s assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements.
To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each of the residential parcels within the District receives special benefits from the improvements to be funded by annual assessments and based on the planned property development a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit.
5.3.1 EQUIVALENT BENEFIT UNITS:
To assess benefits equitably it is necessary to relate each property’s proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1972 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit methodology that uses the single-family home site as the basic unit of assessment.
A single-family home site equals one Equivalent Benefit Unit (EBU) and the other land uses are converted to a weighted EBU based on an assessment formula that equates the property’s specific development status, type of development (land use), and size of the property, as compared to a single- family home site.
Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District.
5.3.2 EBU APPLICATION BY LAND USE:
(1) Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against regarding special benefit (i.e.
Equivalent Benefit Unit “EBU”).
(2) Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile home parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 11 assessed for the parcel’s total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density (number of units) increases the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases.
Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units; 0.50 EBU per unit for units 51 through 100; and 0.25 EBU per unit for remaining units.
(3) Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors, it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). (4) Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed).
(5) Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 12 of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not a direct reflection of the property’s special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) an Equivalent Benefit Unit of 1.00 EBU per acre (4 units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.00 EBU (parcels in excess of 25 acres are assigned 25.00 EBU). Parcels less than one acre, shall be assigned a minimum of 1.00 EBU (similar to a vacant lot within a residential tract). (6) Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU. This land use classification may include but is not limited to:
Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County);
Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District; Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use;
These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment but shall be reviewed annually by the assessment engineer to confirm the parcels’ current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status.
(7) Special Cases — In many districts where multiple land use classifications are involved, there are usually one or more properties for which the standard land use classifications do not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel’s total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel.
6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 13 The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined.
Property Type
Equivalent
Benefit Units Multiplier
Single-family Residential 1.00 Per Unit/Lot/Parcel
Multi-family Residential
0.75 Per Unit for the First 50 Units
0.50 Per Unit for Units 51-100
0.25 Per Unit for all Remaining Units
Condominium/Townhome Units 0.75 Per Unit
Planned Residential
Development
1.00 Per Planned SF Residential Lot
0.75 Per Planned Condominium
0.75 Per Unit for the First 50 Units
0.50 Per Unit for Units 51-100
0.25 Per Unit for all Remaining Units
Vacant Residential Land 1.00 Per Acre
Exempt Parcels 0.00 Per Parcel
The following formula is used to calculate each parcel’s EBU (proportional benefit).
Parcel Type EBU x Acres or Units = Parcel EBU
The total number of Equivalent Benefit Units (EBU’s) is the sum of the individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU’s of the parcels benefiting from the improvements. This Rate is then applied back to each parcel’s individual EBU to determine the parcel’s proportionate benefit and assessment obligation for the improvements.
Total Balance to Levy / Total EBU = Levy per EBU
Levy per EBU x Parcel EBU = Parcel Levy Amount
5.4 Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation).
The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval included a maximum assessment 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 14 amount for Fiscal Year 2005/2006 (initial maximum assessment), identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein.
The Assessment Range Formula for this District shall be applied to future assessments and is generally defined:
If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment.
The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for Fiscal Year 2005/2006 adjusted annually by the greater of, three percent (3%) or the annual percentage change in the Consumer Price Index (CPI) of “All Urban Consumers” for the San Francisco-Oakland-Hayward Area from February to February. The Maximum Assessment rate was increased by 3.000% for Fiscal Year 2025/26.
Beginning with Fiscal Year 2006/2007 and each fiscal year thereafter, the Maximum Assessment Rate has been recalculated and a new Maximum Assessment Rate is established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate is calculated independent of the District’s annual budget and proposed assessment. The annual percentage change in CPI is based on available data provided by the U.S. Department of Labor; Bureau of Labor Statistics at the time the annual Report is prepared. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. In January 2018, BLS introduced a new geographic area sample for the CPI. As part of the change the index for this area was renamed from San Francisco-Oakland-San Jose to San Francisco-Oakland-Hayward. The metropolitan area is comprised of Alameda, Contra Costa, Marin, San Francisco, San Mateo Counties in the State of California. This CPI will be used going forward.
Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment, even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increase the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classifications are permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment.
To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of Article XIIID Section 4c, that requires a public hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed. 6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 15
6. ASSESSMENT DIAGRAM
The parcels within the Landscaping and Lighting District No. 01 (Apple Valley) consist of the lots, parcels and subdivisions of land located in the planned residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (27.71 acres) in the northern portion of the City of Atascadero.
The following map is based on the District Diagram, the San Luis Obispo County Assessor’s Maps and the San Luis Obispo County Assessor’s information and identifies the parcels of land within the proposed District, as the same existed at the time the District was formed. The combination of the District Diagram on file with the City Clerk and the Assessment Roll contained in this Report constitute the District Assessment Diagram.
6/10/25 | Item H4 | Attachment 6
City of Atascadero
2025/26 Engineer’s Report – Lighting and Landscaping District No. 01 (Apple Valley) 16
7. ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor’s Office at the time the Engineer’s Report was prepared. A listing of the lots and parcels to be assessed within this District along with the assessment amounts is provided herein.
Non-assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas, rights-of-way, common areas; landlocked parcels, small parcels vacated by the County, bifurcated lots, and any other property that cannot be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment.
If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
6/10/25 | Item H4 | Attachment 6
City of Atascadero
Landscaping & Lighting Maint Dist No. 1
Final Billing Detail Report for Fiscal Year 2025/26
APN Address Land Use Benefit Units Max Assessment Grand Total 049-191-039 1975 SAN RAMON RD XMT 0.0 $0.0000 $0.00
049-191-040 1980 SAN RAMON RD XMT 0.0 0.0000 0.00
049-191-041 DEL RIO XMT 0.0 0.0000 0.00
049-192-001 6000 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-002 6010 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-003 6020 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-004 6030 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-005 6040 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-006 6050 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-007 6060 VIA COLONIA RD SFR 1.0 2,085.8760 900.00 049-192-008 6055 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-009 6045 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-010 6035 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-011 6025 VIA COLONIA RD SFR 1.0 2,085.8760 900.00 049-192-012 6015 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-013 6005 VIA COLONIA RD SFR 1.0 2,085.8760 900.00 049-192-014 5045 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-015 5035 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-016 5025 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-017 5015 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-018 5005 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-019 5010 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-020 5020 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-021 5030 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-192-022 5040 VIA COLONIA CT SFR 1.0 2,085.8760 900.00 049-193-001 6100 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-002 6120 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-003 6130 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-004 6140 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-005 6150 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-006 6160 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-007 6170 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-008 6180 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-010 6200 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-011 6210 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-012 6220 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-013 6225 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-014 6215 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-015 6205 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-016 6195 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-017 6185 VIA HUERTO RD SFR 1.0 2,085.8760 900.00 049-193-018 6125 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 Slight variances may occur due to rounding
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City of Atascadero
Landscaping & Lighting Maint Dist No. 1
Final Billing Detail Report for Fiscal Year 2025/26
APN Address Land Use Benefit Units Max Assessment Grand Total 049-193-019 6115 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-020 6105 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 049-193-021 2180 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-022 2190 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-023 2200 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-024 2210 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-025 2220 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-026 6190 CONEJO RD SFR 1.0 2,085.8760 900.00
049-193-027 6180 CONEJO RD SFR 1.0 2,085.8760 900.00
049-193-028 6160 CONEJO RD SFR 1.0 2,085.8760 900.00
049-193-029 6140 CONEJO RD SFR 1.0 2,085.8760 900.00
049-193-030 6100 CONEJO RD SFR 1.0 2,085.8760 900.00
049-193-031 2235 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-032 2225 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-033 2215 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-034 2205 SAN RAMON RD SFR 1.0 2,085.8760 900.00 049-193-035 2195 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-036 2185 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-037 2175 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-038 2165 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-039 2135 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-040 2125 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-041 2115 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-042 2065 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-043 2055 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-044 2100 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-045 2110 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-046 2140 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-047 2150 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-048 2160 AVENIDA MANZANA RD SFR 1.0 2,085.8760 900.00 049-193-049 2130 AVENIDA MANZANA XMT 0.0 0.0000 0.00
049-193-051 6190 VIA HUERTO CT SFR 1.0 2,085.8760 900.00 74 Accounts 70.0 $146,011.3200 $63,000.00
Slight variances may occur due to rounding
Copyright © 2013 by NBS Page 2 of 2 04/22/2025 08:36:06AM 6/10/25 | Item H4 | Attachment 6
CITY OF ATASCADERO
CITY COUNCIL STAFF REPORT Item H5
Department: Administrative
Services
Date: 6/10/25
Placement: Public Hearing
TO: JAMES R. LEWIS, CITY MANAGER
FROM: JERI RANGEL, DIRECTOR OF ADMINISTRATIVE SERVICES
PREPARED BY: CINDY CHAVEZ, DEPUTY DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: De Anza Estates Assessment Districts
RECOMMENDATIONS:
Council:
1. Adopt Draft Resolution A, approving the final Engineer’s Report regarding the Street and Storm Drain Maintenance District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto for fiscal year 2025/2026.
2. Adopt Draft Resolution B, ordering the levy and collection of assessments for fiscal year 2025/2026 for Street and Storm Drain Maintenance District No. 03 (De Anza Estates).
3. Adopt Draft Resolution C, approving the final Engineer’s Report regarding the Landscaping and Lighting District No. 03 (De Anza Estates), and the levy and collection of annual assessments related thereto in fiscal year 2025/2026.
4. Adopt Draft Resolution D, ordering the levy and collection of assessments for fiscal year 2025/2026 for Landscaping and Lighting District No. 03 (De Anza Estates).
REPORT IN BRIEF:
Adoption of the annual Draft Resolutions A-D declaring the City’s intention to levy and collect assessments for fiscal year 2025/2026 for the De Anza Estates Street and Storm Drain Maintenance and the Landscaping and Lighting Maintenance Districts.
DISCUSSION:
The City Council formed and began assessing Street and Storm Drain Maintenance District No.03 (De Anza Estates) in 2005. This district was formed to provide funding for future routine maintenance of the streets, storm drains and sidewalks in the De Anza Estates subdivision. The
6/10/25 | Item H5 | Staff Report
City Council also formed and began assessing Landscaping and Lighting Maintenance District No.03 (De Anza Estates) in 2005. This district was formed to provide for funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscaping and lighting improvements within the De Anza Estates subdivision.
NBS, an independent financial consultant, was hired to prepare the engineer’s reports for the two districts. The engineer’s reports and the levies must be approved by Council annually. This is done in a two-step process. Last month, three resolutions for each district (a total of 6 resolutions in all) were passed to begin the process of continuing the levies. At that time, the Engineer’s Reports were preliminarily approved, proceedings were initiated for the levy, and the date of tonight’s public hearing was established. The resolutions that are before the Council tonight are for the final approval of the Engineer’s Reports and for the approval of the annual levies.
The proposed assessments for fiscal year 2025/2026 are less than the Maximum Assessment Rate. In accordance with the formula voters of the district adopted in 2005, the City may increase the Maximum Assessment Rate for inflation by the greater of the Consumer Price Index (CPI) or
3.0%. The Maximum Assessment Rate was increased by 3.0% (CPI) this year for both districts.
An Assessment Information Notice was mailed to all property owners in late April. The notice provided City staff contact information for questions and comments, dates for the related Council meetings, information on how to participate in the meeting, and the proposed and current levies for both districts.
Staff has reviewed the short and long-term costs to maintain the districts and recommends an increase of $25 for the Landscaping and Lighting District and no increase for the Street and Storm Drain Maintenance District. The total cost of both districts is proposed to be $617.48 for Zone A and $956.50 for Zone B. The Landscaping and Lighting District levy is about 16% of the allowable maximum annual assessment and the Street and Strom Drain District is about 58% of the allowable maximum annual assessment.
District Amount Per EBU
Assessment
Fiscal Year 2024-25
Amount Per EBU
Proposed
Assessment Fiscal
Year 2025-26
Atascadero Street and Storm Drain Maintenance District
No. 03 De Anza Estates - Senior Housing (Zone A) $ 342.48 $ 342.48 Atascadero Street and Storm Drain Maintenance District
No. 03 De Anza Estates - Single Family Residential (Zone B)
$ 681.50 $ 681.50
Atascadero Landscaping and Lighting Maintenance
District No. 03 De Anza Estates $ 250.00 $ 275.00
6/10/25 | Item H5 | Staff Report
While the levy for fiscal year 2025/2026 for the Landscape and Lighting District is proposed with a slight increase, staff projects that the districts will likely see future increased costs due to aging infrastructure and increases in utilities, materials, and labor costs. City staff will continue to maximize efficiencies and minimize these increases as much as possible.
FISCAL IMPACT:
Annual assessments for 2025/2026 will total $30,562 for road/drainage system maintenance and $17,463 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. The City General Fund will contribute $1,400 for the fiscal year 2025/2026 for half of the maintenance costs of the trails and open space.
REVIEWED BY OTHERS:
This item has been reviewed by the Administrative Services Director.
REVIEWED AND APPROVED FOR COUNCIL AGENDA
James R. Lewis, City Manager
ATTACHMENTS:
1. Draft Resolution A
2. Draft Resolution B
3. Engineer’s Annual Levy Report Street and Storm Drain Maintenance District No. 03 (De Anza Estates)
4. Draft Resolution C
5. Draft Resolution D
6. Engineer’s Annual Levy Report - Landscaping and Lighting District No. 03 (De Anza Estates)
6/10/25 | Item H5 | Attachment 1
DRAFT RESOLUTION A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING THE FINAL ENGINEER’S
REPORT REGARDING THE STREET AND STORM DRAIN
MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES), AND THE
LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED
THERETO FOR FISCAL YEAR 2025/2026
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as “City Council”), pursuant to the provisions the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”), did by previous Resolution order the Engineer, NBS, to prepare and file a report in accordance with the Act in connection with Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”) and the proposed levy and collection of assessments related thereto for fiscal year 2025/2026, said fiscal year starting July 1, 2025 and ending June 30, 2026; and
WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled “Engineer’s Annual Levy Report for Street and Storm Drain Maintenance District No. 03 (De Anza Estates), fiscal year 2025/2026” (hereafter referred to as “Engineer’s Report”) in accordance with the Act; and
WHEREAS, the City Council has carefully examined and reviewed the Engineer’s Report as presented and is satisfied with the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer’s Report.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. The above recitals are true and correct.
SECTION 2. The Engineer’s Report as presented, consists of the following:
a) Plans and specifications that describe the District and Improvements. b) Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel’s proportional special benefit assessment.
c) The Budget that outlines the costs and expenses to service and maintain the improvements including incidental expenses to operate the District. d) An Assessment Diagram that identifies the boundaries of the District.
6/10/25 | Item H5 | Attachment 1
e) An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and the assessment for fiscal year 2025/2026.
SECTION 3. The Engineer’s Report as presented, is hereby approved, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.
SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer’s Report.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of June, 2025.
On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
6/10/25 | Item H5 | Attachment 2
DRAFT RESOLUTION B
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2025/2026 FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03
(DE ANZA ESTATES)
WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings to levy special benefit assessments against parcels of land within Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”) for the fiscal year commencing July 1, 2025 and ending June 30, 2026; pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the “Act”) to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of-way improvements and storm drain facilities related thereto; and WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer’s Report in connection with the proposed levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer’s Report; and
WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2025 and ending June 30, 2026, to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-ofway improvements and storm drain facilities related thereto; and WHEREAS, the City Council conducted in May 2005 a property owner protest ballot proceeding for the District assessments proposed to be levied and majority protest of the assessments described in the Engineer’s Report did not exist pursuant to the provisions of the California State Constitution Article XIIID.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Atascadero:
SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer’s Report prepared in connection therewith; the levy and collection of assessments, and considered the oral and written statements, protests and communications made or filed by interested persons.
SECTION 2. Based upon its review of the Engineer’s Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that:
a) The land within District will receive special benefit by the operation, maintenance, and servicing of improvements to be provided by the District.
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b) The District includes the lands receiving such special benefit. c) The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among the eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2025, and ending June 30, 2026.
SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street right-of-way improvements and storm drain facilities within the District and the appurtenant facilities related thereto.
SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City.
SECTION 5. The City shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Street and Storm Drain Maintenance District No. 03 (De Anza Estates), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution.
SECTION 6. The adoption of this Resolution constitutes the establishment of the maximum assessment rate described in the Engineer’s Report and the levy of assessments for the fiscal year commencing July 1, 2025, and ending June 30, 2026.
SECTION 7. The City Clerk or their designee is hereby authorized and directed to file the levy with the County Auditor, per Section 54718 of the Act, upon adoption of this Resolution.
PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of June, 2025.
On motion by Council Member ______ and seconded by Council Member _______, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ATASCADERO:
________________________________
Charles Bourbeau, Mayor
ATTEST:
Lara K. Christensen, City Clerk
nbsgov.com
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Fiscal Year 2025/26 Engineer’s Report For:
Street and Storm Drain Maintenance
District No. 03 (De Anza Estates)
May 2025
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CITY OF ATASCADERO
Street and Storm Drain Maintenance District No. 03
(De Anza Estates)
6500 Palma Avenue
Atascadero, CA 93422
Phone – (805) 461-5000
Fax – (805) 461-7612
CITY COUNCIL
Charles Bourbeau, Mayor
Mark Dariz, Mayor Pro Tem
Susan Funk, Council Member
Seth Peek, Council Member
Heather Newsom, Council Member
AGENCY STAFF
Jim Lewis, City Manager
Jeri Rangel, Administrative Services Director
Cindy Chavez, Deputy Director of Administrative Services NBS
Tim Seufert, Client Services Director
Adina McCargo, Project Manager
Danielle Robison, Administrator
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TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Executive Summary ........................................................................................................ 2
3. Plans and Specifications .................................................................................................. 4
3.1 Benefiting Properties within the District ................................................................ 4
3.2 Funding Authorized by the 1982 Act ....................................................................... 4
3.3 Description of Improvements and Services ............................................................ 4
4. Estimate of Costs ............................................................................................................ 8
5. Method of Assessment ................................................................................................... 9
5.1 General .................................................................................................................... 9
5.2 Benefit Analysis ....................................................................................................... 9
5.3 Assessment Methodology ..................................................................................... 10
5.4 Assessment Range Formula .................................................................................. 15
6. Assessment Diagram ..................................................................................................... 17
7. Assessment Roll ............................................................................................................ 18 6/10/25 | Item H5 | Attachment 3
City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 1
1. ENGINEER’S LETTER
WHEREAS, on August 9, 2005 by Resolution No. 2005-071, the City Council of the City of Atascadero (the ”City”), State of California, in accordance with and pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), established the City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (the “District”); and
WHEREAS, on May 13, 2025, the City Council, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer’s Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received.
NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2025/26:
FY 2025/26 Summary of Assessment
Description Zone A - Amount Zone B - Amount Total Amount Estimated Annual Costs 11,635 $19,615 $31,250
Capital Reserve Collection/(Uses) $12,325 $18,486 $30,811 Levy Adjustments (11,117) ($20,382) ($31,499)
Balance to Levy (1) $12,843 $17,719 $30,562
Fiscal Year 2025/26 Maximum Rate (2) $947.74 $1,171.72
Fiscal Year 2025/26 Proposed Applied Rate (2) $342.48 $681.50 (1) Total Levy Amount is rounded up to the nearest dollar. (2) Rates above are per Equivalent Benefit Unit.
I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1982 Act.
City Engineer
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City of Atascadero
2025/26 Engineer’s Report – Street and Storm Drain Maintenance District No. 03 (De Anza) 2
2. EXECUTIVE SUMMARY
Pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the “1982 Act”), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the “California Constitution”), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as “City”), proposed to form and levy special benefit assessments for the district designated as:
Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”), which includes the lots and parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 within the City limits of the City. This Engineer’s Report (hereafter referred to as the “Report”) has been prepared in connection with the levy and collection of annual assessments related thereto for Fiscal Year 2025/26.
The City Council formed the District and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution.
This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities. The annual assessments described herein will provide a funding source for the continued operation and maintenance of streets, storm drain system and appurtenant facilities installed in connection with the development of properties within the District.
The improvements and assessments described in this Report are based on the development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the streets and storm drain system that provides special benefits to properties within the District. The structure of the District (organization), the improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2498; and by reference these plans and specifications are made part of this Report.
The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the San Luis Obispo County Assessor’s Office. The San Luis Obispo County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.
As part of this District’s formation, the City conducted a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council conducted a noticed public hearing to consider public testimonies, comments and written protests regarding the formation of the District and 6/10/25 | Item H5 | Attachment 3